The stock price plummeted, and Nvidia made a statement.

NVIDIA's latest statement.

According to Reuters, NVIDIA's stock price plunged about 17% on the same day when DeepSeek, a Chinese AI startup, rose to challenge the US stock market. The company then issued a statement, saying that DeepSeek's progress showed the effectiveness of its chips in the Chinese market and that more NVIDIA chips would be needed to meet the service needs of DeepSeek in the future.

Reuters said that before NVIDIA's statement, the company's stock price plunged due to investors' concerns that DeepSeek used far fewer NVIDIA chips than US companies but could still compete with rivals such as OpenAI, an open-source AI research center. Meanwhile, the stock price of NVIDIA's rival, Advanced Micro-Fabrication Equipment Inc., also fell more than 6% to $115.01 per share on the same day.

The company said in its statement on the same day that "DeepSeek's performance shows how to create new models using technology, (that is, how) to use widely available models and fully comply with export controls (to create new models)."

David Sacks, the White House's director of artificial intelligence and cryptocurrency, posted on X that DeepSeek R1's performance showed that the competition in artificial intelligence would be very fierce and that President Trump's decision to revoke Biden's executive order was correct. Sacks said Biden had bound US AI companies with executive orders. He also said, "I am confident in the United States, but we cannot be complacent."

After stunning Silicon Valley and Wall Street with its R1 model, DeepSeek made a big move in the middle of the night. About 10:00 pm on January 27, Liang Wenfeng, the founder of DeepSeek, said on X that a new version of DeepSeek would be released. About three hours later, the artificial intelligence open-source community HuggingFace showed that DeepSeek had released a series of open-source multimodal models named Janus-Pro and JanusFlow with parameter sizes ranging from 10 billion to 70 billion.