Entertainment
Why DeepSeek is hitting tech stocks hard, including Nvidias
Today could be a very red day in the stock market, and DeepSeek might be to blame.
China’s AI startup DeepSeek has captured the attention of enthusiasts ever since its launched its latest reasoning AI model, DeepSeek R1. It’s just as smart or even more capable than competing models, including OpenAI’s top model, while charging a lot less for AI access. It’s free to use as a web or smartphone app, and it’s available as open-source, meaning you can use it locally and fine-tune it as you wish, without worrying about the privacy implications or Chinese censorship.
In a matter of days, DeepSeek proved to be so popular as to climb to the top of Apple’s App Store, surpassing OpenAI’s ChatGPT as the most downloaded app.
But for owners of Nvidia stock, and stock traders in general, DeepSeek is on track of becoming a black swan — an unexpected event with extreme consequences.
Early on Monday, Nvidia stock went down 13% in premarket trading at one point, threatening to wipe more than $500 billion off of Nvidia’s market cap. As of this writing, $NVDA is at $125.95, roughly 11% down from its last traded price of $142, while NASDAQ is down 3.9% in premarket trading.
The reason why the market reacted so poorly to DeepSeek can be found in its cost and efficiency. While we don’t know all the details about DeepSeek’s budget, it apparently cost DeepSeek just $5.58 million to train its DeepSeek V3 model, and the company reportedly had 50,000 Nvidia GPUs at its disposal; a respectable number but still very low when compared to major U.S. AI companies which reportedly have more than 10 times that number.
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Speaking at the World Economic Forum in Davos, Switzerland, on Wednesday, Microsoft’s Satya Nadella said that DeepSeek should be taken “very seriously.”
“To see the DeepSeek new model, it’s super impressive in terms of both how they have really effectively done an open-source model that does this inference-time compute, and is super-compute efficient,” he said.
And investor Marc Andreessen called DeepSeek “one of the most amazing and impressive breakthroughs” he’d ever seen.
What DeepSeek’s rise means for the AI industry
If DeepSeek was indeed able to match the performance of OpenAI’s best model on far less Nvidia GPUs and at a fraction of a cost, then the implications are that the demand for Nvidia GPUs, which is driving the company’s stock price up, may go down in the future. More broadly, the entire AI market may be overblown, as seen by today’s performance of AI-related companies.
Of course, it’s never that simple. DeepSeek, an offshoot of Chinese AI-specialized hedge fund High-Flyer Quant, could actually be running more GPUs and train its models on a higher cost than is publicly known.
Furthermore, while the market obviously reacted poorly to the news, it is possible that DeepSeek tech could open up new possibilities in AI in the future, which in turn could once again spark another race to get as much AI hardware as possible.
It’s also worth noting that DeepSeek is not the only new Chinese player in the space. ByteDance, parent company of TikTok, announced its Doubao-1.5-pro model yesterday, which also beats many top models in a number of benchmarks, though – in contrast to DeepSeek – Doubao is not available as open source.
It will likely take a while until the market absorbs all this news and its significance to the AI space; for now, though, the direction is down.
Topics
Artificial Intelligence
Entertainment
Get a free Samsung Galaxy S26 from T-Mobile without trading in your old phone
FREE SAMSUNG GALAXY S26: Sign up for a T-Mobile Experience Beyond plan for 24 months and get a free Samsung Galaxy S26 (256GB) which ordinarily costs $899.99. Existing T-Mobile Go5G Plus members also qualify for the deal.
It’s tough to find a free deal these days. We usually have a massive amount of fine text to read, but T-Mobile is making this deal pretty simple. Sign up for two years of coverage (which you probably needed anyway) and get a free Samsung Galaxy S26 (256GB). Here’s how to qualify.
To get a free Samsung Galaxy S26 (256GB) instead of paying the list price of $899.99, sign on for 24 months of a T-Mobile Experience or Better Value plan. You’ll save the $900 over the next 24 months of bill credit at T-Mobile. No trade in is required to cash in on this deal.
Announced in February, the Samsung Galaxy S26 is the latest model from the major iPhone competitor. It comes with added features like better AI capabilities and a 50 megapixel camera. Samsung also mentions improvements in display clarity with the new S26, giving off better colors and sharper details.
If you’re one for selfies, the Samsung Galaxy S26 could be a great option. Samsung designed the front-facing camera to have a wider view, making it easier to capture selfies with the group.
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If you’re going with T-Mobile coverage, it’s well worth hopping on this free Samsung Galaxy S26 deal. The cell phone bill was inevitable so you might as well snag a free upgraded phone in the process.
Entertainment
Buy a $300 Delta gift card and get a free $20 Starbucks gift card
BUY A DELTA GIFT CARD FOR $300+ AND GET A FREE STARBUCKS GIFT CARD: Through May 11, buy a Delta gift card for $300 or more and get a free $20 Starbucks eGift card.
Credit: Delta / Starbucks
The price of flying these days is shocking. If you plan on traveling soon on a route served by Delta, it’s well worth checking out this deal to get something for free. It’ll help ease the pain of the ticket price.
Through May 11, purchase a Delta gift card worth $300 or more and get a free $20 Starbucks eGift card. It’s as simple as that. You can also qualify for the deal by buying multiple gift cards that total at least $300. The deal with apply automatically and you’ll receive a separate email containing the free Starbucks card.
Booking flights these days is not much fun. Prices are ahh…. abnormal, but Delta has eased the pain a bit thanks to this deal. The carrier is positioning this free Starbucks gift card deal as a good option for Mother’s Day, but realistically, it’s useful for anyone who plans to book with Delta soon.
Keep in mind the Delta gift card and Starbucks card will never expire. Delta mentions this offer is valid until May 11 at 11:59 p.m. ET or for the first 11,000 purchasers, whichever comes first. That means it might be smart to hop on this deal soon since there’s no way to know if it’ll last until May 11.
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If you plan on flying soon or want to gift a special someone a Delta gift card worth $300 or more, snag this deal to get a free $20 Starbucks eGift card. It’s a win-win situation for those who plan to fly with Delta.
Entertainment
Snag a pair of Bose QuietComfort Ultra headphones for $50 off
SAVE $50: As of May 6, get the Bose QuietComfort Ultra Headphones (2nd Gen) for $399 at Amazon, down from their usual price of $449. That’s a discount of 11%.
$399
at Amazon
$449
Save $50
If you want to experience your favorite music to the fullest, you need headphones that are up to the task. Bose can typically be counted on to provide that kind of quality, especially with its QuietComfort lineup. You can try its newest model for less right now for less thanks to this Amazon deal, which heavily discounts the cans so you don’t have to spend an arm and a leg on them.
As of May 6, get the Bose QuietComfort Ultra Headphones (2nd Gen) for $399 at Amazon, down from their usual price of $449. That’s $50 off and a discount of 11%.
Though an incremental upgrade from the previous QuietComfort model, these have some new features you’ll want to try out. But mostly, these comfortable headphones are all about feeling great on your ears and sounding fantastic. They offer noise cancellation and spatialized audio so it sounds as though you’re right where the music is. The new Cinema Mode can help to spatialize and balance background and sound and sound effects when watching movies to help put you right into the film as well.
Beyond that they can be used to take calls with their built-in microphones. They’ll last a long time while you’re on the phone too, with 30 hours of play time when listening to songs, podcasts, or taking meetings.
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Mashable Lead Shopping Reporter Bethany Allard took the headphones for a spin in her review and and called them a “well-rounded pair of headphones”, praising their blend of “comfort, noise cancellation, and sound”.
If you’re ready to pick up a new pair of headphones at a discount that’ll tick all the boxes for you, grab these before the discount disappears.
Get a free Samsung Galaxy S26 from T-Mobile without trading in your old phone
Buy a $300 Delta gift card and get a free $20 Starbucks gift card
