Nvidia dropped 13.60% in pre-market trading, while in Europe, ASML and ASM International saw declines of 10.32% and 14.32%, respectively. In Asia, chip-related stocks also fell, highlighting the global impact of this innovation.
In just two months, with a budget of less than $6 million, the startup developed an open-source language model that outperformed OpenAI in several independent tests. This achievement has sparked a debate about the astronomical costs of tech giants' infrastructures and demonstrated that impressive results can be achieved with fewer resources.
Experts believe this development could be a game-changer. Srini Pajjuri, an analyst at Raymond James, explained that the startup, despite having fewer resources than American tech giants, succeeded in creating a competitive model. This could push companies like Amazon and Microsoft to find new ways to optimize GPU use and maintain their edge. Meanwhile, Citi analysts emphasized that the U.S. still holds a key advantage: privileged access to the most advanced chips. And while the startup's reported costs raise some skepticism, others, like Bernstein, consider the panic over a potential AI infrastructure crisis to be overblown.
This development comes as the U.S. ramps up its technological efforts with the Stargate AI project, a $500 billion initiative launched by the Trump administration to remain on top. However, the startup has underscored a fundamental truth: GPUs, like those from Nvidia, remain at the heart of it all.
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