The Chinese startup DeepSeek has launched an Artificial Intelligence machine that is much cheaper faster and better than the American competitors. NVidia fell 17% to this hour and the American 500 billion budget to advance the technology just received a hard beating. If other industries are a precedent, and they are, Chinese manufacturers will erase American industry.
The Japanese auto industry outcompeted American manufacturers like Ford, Chevrolet, and other former giants. Like German and British producers before, the American industrial heartland has been emptied. Japanese industry liquidated the photography and watch industries. People said they were unstoppable. Yet Japan, while still very powerful, has found its place and is not menacing the world. Now China is following the same process and is trying to erase the American hi-tech, AI industry. At a certain point, it will slow down and integrate into the world.
Fortune asks:
- How did China manage to catch up so quickly?
- Is there any hope for the United States to regain a clear lead?
For Nvidia shareholders, today is an opportunity to pick up shares at a discount. The focus shouldn’t be on the next six months but on the next ten years. The demand for computational power will only grow as AI evolves. Models like DeepSeek R1 are merely early milestones in a journey that will require exponential growth in hardware capacity. Those who can see the long game will realize that Nvidia and similar companies aren’t under threat. They are essential pillars of a future dominated by artificial intelligence. Be cool, and don’t panic.
Next day: Nvidia re-gained 7%, up the level two months ago. Somehow NASDAQ stabilized.
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