Reports that Chinese AI lab DeepSeek has created an AI model that rivals U.S. models sent shockwaves through AI chip stocks on Monday.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

In today's video, I discuss the recent updates impacting Nvidia (NASDAQ: NVDA) and other AI stocks after the volatility created by DeepSeek AI. To learn more, check out the short video, consider subscribing,

Nvidia on Monday said Chinese AI firm DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.

Nvidia Corp., the biggest provider of chips used to train artificial intelligence software, said a new model released by Chinese startup DeepSeek is an “excellent AI advancement” that complies with US technology export controls.