DeepSeek built a competing large language model (LLM) to OpenAI's ChatGPT, but claims that it trained the model with old Nvidia processors that aren't widely used anymore. This news has shellshocked technologists and analysts across Wall Street because if DeepSeek's methods of building highly capable AI can be done using legacy hardware,

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Nvidia stock surged as the AI chipmaker began to recover from a massive decline the prior day that shaved nearly $600 billion off its market cap.

Because Nvidia is still growing its revenue rapidly, using trailing earning metrics can give a false impression of where the company is headed. However, they're also useful in this case because its future had a wrench thrown into it thanks to DeepSeek's breakthrough.

Doug and Lee talk about the likelihood of Nvidia having a dot-com-like valuation reset as more effective AI models challenge its supremacy, so perhaps changing AI infrastructure spending across the tech industry.

Nvidia (NASDAQ: NVDA) has gotten off to a bad start on the stock market in 2025, losing more than 10% of its value as of this writing, with Chinese artificial intelligence (AI) start-up DeepSeek's launch of a low-cost but capable AI model playing a key role in the semiconductor giant's troubles.