Up $6.41 or 2.88% on the day to $229.19 Apple on Monday roared past Nvidia to once again retake the mantle of The World’s Most Valuable Company with a commanding market cap of $3.447 trillion as investors flee to the safe harbor operating out of Cupertino.
China’s new AI model DeepSeek is wreaking havoc in stocks focused on artificial intelligence, especially in Generative AI (GenAI).
Nvidia plummeted $22.83, off 15.96% to $119.79 for a market cap of $2.937 trillion. Microsoft, which today has currently shed $16.83 (-3.79%) is now a distant No.2 in market value at $3.177 trillion.
Jasmine Wu and Deirdre Bosa for CNBC:
A little-known artificial intelligence lab out of China has ignited panic throughout Silicon Valley after releasing AI models that can outperform America’s best despite being built more cheaply and with less-powerful chips.
DeepSeek, as the lab is called, unveiled a free, open-source large language model in late December that it says took only two months and less than $6 million to build, using reduced-capability chips from Nvidia
called H800s.The new developments have raised alarms on whether America’s global lead in artificial intelligence is shrinking and called into question Big Tech’s massive spend on building AI models and data centers.
In a set of third-party benchmark tests, DeepSeek’s model outperformed Meta’s Llama 3.1, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in accuracy ranging from complex problem-solving to math and coding.
DeepSeek on Monday released R1, a reasoning model that also outperformed OpenAI’s latest o1 in many of those third-party tests…
“Necessity is the mother of invention,” said Perplexity CEO Aravind Srinivas. “Because they had to figure out work-arounds, they actually ended up building something a lot more efficient.”
MacDailyNews Take: Even with a caretaker CEO hanging on past his sell by date, the mighty engine that Steve Jobs built keeps chugging along.
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