DeepSeek's New AI Model May Violate Export Controls
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: seekingalpha
- Model Training Controversy: DeepSeek's upcoming AI model, expected to launch next week, is trained on Nvidia's latest Blackwell chips, potentially violating U.S. export controls, which could impact its compliance and reputation in international markets.
- Technology Acquisition Concerns: U.S. officials suggest that DeepSeek may remove technical indicators to obscure its use of U.S. AI chips, raising questions about its technology sourcing and potentially leading to stricter regulatory measures.
- Tensions in U.S.-China Relations: The Chinese embassy in Washington opposes the excessive use of export controls by the U.S., emphasizing that such actions could exacerbate technological and trade frictions between the two countries, affecting economic cooperation.
- Market Competition Impact: The model's training relies on technologies from U.S. AI companies, which may provide DeepSeek with an unfair competitive advantage in the global market, intensifying competition pressures against Nvidia and AMD.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 189.820
Low
200.00
Averages
264.97
High
352.00
Current: 189.820
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Commitment: In its earnings report, Meta committed to up to $135 billion in capital expenditures this year to keep pace with competitors like OpenAI and Anthropic, which will support its expansion plans in the global AI landscape.
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See More
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