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Nvidia calls China's DeepSeek R1 model ‘an excellent AI advancement'

1. NVIDIA supports DeepSeek's R1 model, an AI advancement leveraging existing models. 2. R1's training cost is only $6 million, challenging traditional AI cost structures. 3. NVIDIA expects increased GPU demand despite competition from cheaper alternatives. 4. Major tech companies continue to invest heavily in AI infrastructure for NVIDIA products. 5. Analysts question the efficiency of multi-billion dollar investments into NVIDIA-based AI.

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Why Bullish?

NVIDIA's support for DeepSeek highlights its ongoing relevance in AI development. Similar to past innovations, NVIDIA could benefit from increased demand for GPUs.

How important is it?

The article discusses NVIDIA’s strategic position in AI, a critical market for the company. The ongoing advancements in AI directly correlate with NVIDIA's hardware demands, making the analysis significant.

Why Long Term?

The significant investments from companies like Microsoft and Meta indicate sustained demand for NVIDIA's products. Historically, NVIDIA's market has expanded alongside AI advancements, suggesting ongoing impact.

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