Nvidia Corporation (NASDAQ: NVDA) announced that Chinas DeepSeek R1 AI model is now available as a preview on its enterprise software platform. Developers will soon gain access to its API, Nvidia confirmed in a

Nvidia called DeepSeek's R1 model "an excellent AI advancement," despite the Chinese startup's emergence causing the chip maker's stock price to plunge 17%.

B AI model on its wafer-scale processor, delivering 57x faster speeds than GPU solutions and challenging Nvidia's AI chip dominance with U.S.-based inference processing.

U.S. officials are investigating whether Chinese AI startup DeepSeek sourced advanced Nvidia (NASDAQ: NVDA) processors through Singapore distributors to bypass U.S. sanctions, Bloomberg reported. The probe centers

So, let's consider a few facts for a moment. Reuters reports that DeepSeek's development entailed 2,000 of Nvidia's H800 GPUs and a training budget of just $6 million, while CNBC claims that R1 "outperforms" the best LLMs from the likes of OpenAI and others.

Despite the negative financial impact, Nvidia praised DeepSeek’s breakthrough. “DeepSeek is an excellent A.I. advancement and a perfect example of test time scaling,” a company spokesperson told Observer in a statement.

Development on the first DeepSeek R1 clone might have started with the announcement of the Open-R1 open-source project.

DeepSeek R1 model was trained on NVIDIA H800 AI GPUs, while inferencing was done on Chinese made chips from Huawei, the new 910C AI chip.

The near-term implications are grim for competitive AI developers, particularly OpenAI. Data center energy demand expectations should come back down to earth now.

A Chinese expert on Friday called on Western countries to view the rise of Chinese technology firms fairly, as Chinese artificial intelligence (AI) startup DeepSeek faces growing scrutiny from some countries following its rise in the international market.

DeepSeek’s cost-effective R1 AI model was integrated by Microsoft into the Windows 365 HDX Cloud Desktop, Azure AI Foundry, and GitHub. This move allows developers to easily incorporate R1 into their AI applications to start training their models more cheaply and deploy them.