Nvidia is touting the performance of DeepSeek’s open source AI models on its just-launched RTX 50-series GPUs, claiming that they can “run the DeepSeek family of distilled models faster than anything on the PC market.” But this announcement from Nvidia might be somewhat missing the point.

Nvidia's H800 was launched in March 2023 and is a cut-down version of the H100 It is also significantly slower than Nvidia's H200 and AMD's Instinct range These artificial constraints have forced DeepSeek's engineering to innovate It was widely assumed that the United States would remain unchallenged as the global AI superpower,

Nvidia (NASDAQ: NVDA) stock took a haircut recently after China-based startup DeepSeek announced the success of its R1 model at building open-source large language models for a fraction of the currently expected cost.

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.