Nvidia's DeepSeek and Alibaba's AI: Tech Industry Evolving

Published Date : 03/02/2025 

Despite a significant market value plunge, Nvidia Corp. acknowledges the potential of China's DeepSeek R1 AI model. Meanwhile, Alibaba unveils its new AI model, Qwen2.5-VL, and Nvidia's CEO envisions a robotic future. 

The tech industry experienced a tumultuous week, marked by significant developments in artificial intelligence and substantial market fluctuations.

The emergence of China’s DeepSeek R1 artificial intelligence model and a $600 billion decline in Nvidia’s market value were among the key events.

Alibaba also made headlines with the release of its new AI model, while Nvidia’s CEO, Jensen Huang, shared his vision of a future dominated by robotics.

Here’s a recap of the top stories.

Nvidia Acknowledges DeepSeek Amid Market Value Plunge

Nvidia Corp.

(NVDA) has recognized the potential of China’s DeepSeek R1 artificial intelligence model.

This recognition came as DeepSeek’s open-source AI model, developed for under $6 million, reportedly outperformed leading U.S.

models like those from OpenAI.

The news triggered a broader tech selloff, with Nvidia shares falling 17% and AI infrastructure stocks tumbling over 20%.

Black Swan Author Warns of Market Rout

Nassim Taleb, author of “Black Swan,” has warned investors about the fragility of wealth concentration in technology stocks.

He highlighted Nvidia following its recent 17% decline, cautioning that the electric vehicle sector could follow a similar trajectory, citing historical examples such as General Motors Company (GM).

Alibaba Unveils Advanced AI Model

Chinese e-commerce giant Alibaba Group Holding (BABA) released a new family of AI models, Qwen2.5-VL.

This advanced AI model can parse files, comprehend videos, count objects in images, and control a PC.

It is similar to the AI model powering OpenAI's recently launched Operator.

Nvidia CEO Envisions Robotic Future

Nvidia CEO Jensen Huang predicts a future dominated by robotics and artificial intelligence.

“Everything that moves will be robotic someday, and it will be soon,” Huang said, describing a world where autonomous vehicles and robotic assistance become commonplace.

His vision underscores the growing importance of AI in various industries.

Nvidia RTX 5090 and 5080 Sell Out Instantly

Nvidia Corporation launched its RTX 5090 and 5080 graphics cards, which sold out almost immediately.

The highly anticipated Nvidia Series 5000 GPUs were in high demand, leaving many gamers frustrated.

The rapid sell-out highlights the strong interest in the latest graphics technology.

Image created using artificial intelligence via Midjourney. 

Frequently Asked Questions (FAQS):

Q: What is the DeepSeek R1 AI model?

A: DeepSeek R1 is an open-source artificial intelligence model developed by China. It reportedly outperformed leading U.S. models like those from OpenAI and was developed for under $6 million.

Q: How did Nvidia's market value change recently?

A: Nvidia's market value declined by $600 billion, which was triggered by the recognition of the potential of China's DeepSeek R1 AI model and a broader tech selloff.

Q: What did Alibaba unveil recently?

A: Alibaba Group Holding unveiled a new family of AI models called Qwen2.5-VL, which can parse files, comprehend videos, count objects in images, and control a PC. It is similar to the AI model powering OpenAI's Operator.

Q: What is Nvidia CEO Jensen Huang's vision for the future?

A: Nvidia CEO Jensen Huang envisions a future dominated by robotics and artificial intelligence, where everything that moves will be robotic and autonomous vehicles and robotic assistance will become commonplace.

Q: What happened with the launch of Nvidia's RTX 5090 and 5080 graphics cards?

A: Nvidia launched its RTX 5090 and 5080 graphics cards, which sold out almost immediately due to high demand. The rapid sell-out left many gamers frustrated but highlighted the strong interest in the latest graphics technology. 

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