CNBC's Jim Cramer expresses doubts about DeepSeek's potential to significantly impact Nvidia's sales, suggesting the Chinese AI startup may have exaggerated its model's development costs and capabilities. He cites a report from SemiAnalysis that raises concerns about DeepSeek's transparency.
CNBC's Jim Cramer expressed skepticism on Friday regarding the potential threat posed by DeepSeek to Nvidia 's sales, downplaying fears that the Chinese artificial intelligence startup might significantly impact Nvidia 's market position. Cramer suggested that DeepSeek's recent claims about its large language model's development costs and performance capabilities might not be entirely accurate, hinting that the company may have understated its expenses.
He referenced a new report from SemiAnalysis, a semiconductor research and consulting firm, which echoed similar concerns, alleging that DeepSeek's presentation of its model development process could be misleading.Earlier this week, investors were jolted by DeepSeek's announcement of an AI model that they claimed cost only $6 million to create, a significantly lower figure compared to the multi-million dollar investments typically required by industry giants. DeepSeek also boasted that their model could outperform even OpenAI's renowned systems, leading to widespread speculation that Big Tech companies might no longer need to rely heavily on Nvidia's high-end chips for their AI endeavors.Cramer acknowledged the logical investor concerns triggered by DeepSeek's claims, particularly the potential for Nvidia to be forced into lowering prices to compete. However, he emphasized the possibility that DeepSeek's actual development expenses exceeded what they publicly disclosed. Cramer commended SemiAnalysis's report, stating that it accurately highlighted the potential for DeepSeek to be a strategic maneuver aimed at pressuring Nvidia rather than a genuine technological breakthrough. He further pointed out that DeepSeek was not a completely unknown entity, but its recent surge in attention was primarily fueled by its claims regarding its AI model
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