Here are all the updates for Monday, the 27th of January Nvidia stock dropped more than 15% in one day. I’ll just let that sink in. To say that the release of Deepseek R1 has been disruptive would be an immense understatement.
So many users have already been experimenting with this new model and are falling in love with it. People have it running locally on their phones, people have used it to create operator competitors that don’t cost $200. The validation for having an OpenAI subscription is disappearing fast and it hasn’t gone unnoticed.
A leading model that was trained for a fraction of the cost and compute has shattered the “we just need more compute” paradigm and consequently Nvidia has taken the brunt of the fallout. There are also many rumours of OpenAI being in a panic, with people saying that they are shocked by the revolutionary Deepseek model.
Are OpenAI sandbagging? Do they have way more advanced models that are not released and will Deepseek force their hand? The coming days will be very interesting.