Nvidia Down, Anthropic Up

In a surprising twist that has sent shockwaves through the AI sector, a secretive Chinese AI company, Deepseek, reportedly pilfered OpenAI's prized AI model, replicating its capabilities for an estimated $5 million—far less than the many billions OpenAI has spent.

Since mythmaking is so powerful, disruption of this magnitude—described by Marc Andreessen as AI's Sputnik moment—must be closely analyzed. For example, what was the real-world impact of Deepseek's emergence, and in what areas was it most significantly felt?

Being privately owned allows OpenAI and Deepseek to avoid the short-sighted decisions often made by Wall Street. However, their AI partners faced a different outcome. Nvidia, the leading chip manufacturer and a crucial player in the global AI arena, saw its stock plunge nearly 20% immediately following the news. Jensen Huang, Nvidia's founder and Trump whisperer, has navigated market volatility before: Dating back to 2022, Wall Street's darling chipmaker has experienced some of the sharpest declines in valuation of any publicly listed company.

But those were minor compared to last week's single-day $600 billion loss.

Competition in enterprise AI

Meanwhile, competition is fierce in the global enterprise market for AI. For example, Anthropic, Amazon's big bet, doubled its market share among enterprise customers from 2023 to 2024. Notably, Anthropic's gains appear to mirror losses experienced by OpenAI.^[1]