Nvidia shares fluctuated this week as China’s DeepSeek unveiled its open-source R1 LLM, raising concerns about reduced demand for AI chips. The R1 model claims to deliver accurate results with fewer AI accelerators at a lower cost than OpenAI, sparking fears that Nvidia’s dominance in AI hardware could be challenged. However, investor Stone Fox Capital argues these concerns are overblown, stating that efficiency gains often drive broader adoption, sustaining chip demand. Nvidia chip demand is only at risk if a competitor develops superior GPUs, according to the investor.
