As Wall Street saw a nightmare with major US tech stocks like Nvidia, Microsoft, Meta and Tesla set for a $1 trillion rout over fears for Chinese AI model DeepSeek, Elon Musk offered his opinion about it on X. DeepSeek has said it only needed 2,000 specialized chips from Nvidia to train its V3. This is in comparison to a reported 16,000 or more required to train leading models, as reported by the New York Times.
Elon Musk reacted to a post that claimed that DeppSeek has about 50,000 Nvidia H100s that they can’t talk about because of the US export controls that are in place. “Obviously,” Elon Musk wrote. The post was based on the claim of Scale AI CEO Alexandr Wang with whom Elon Musk agreed about what DeepSeek AI is not revealing.
In another post, Elon Musk called in ‘DeeperSeek’.
Musk also replied to a post from Salesforce CEO Marc Benioff, who had written: “Deepseek is now #1 on the AppStore, surpassing ChatGPT—no NVIDIA supercomputers or $100M needed. The real treasure of AI isn’t the UI or the model—they’ve become commodities. The true value lies in data and metadata, the oxygen fueling AI’s potential. The future’s fortune? It’s in our data. Deepgold.”
To this, Musk responded, “Lmao no.”
DeepSeek’s AI Assistant, which is powered by DeepSeek-V3, has now overtaken the rival tool ChatGPT and become the top-rated free application available on the Apple App Store in the United States.
Apple, Nvidia, Google parent Alphabet, Tesla, Microsoft, Meta and Amazon were hit hard in the selloff. Alphabet fell more than 2%, while Microsoft, which has plunged billions of dollars into Sam Altman-led OpenAI, fell nearly 3%. Shares of Amazon, Elon Musk’s Tesla and Mark Zuckerberg’s Meta were also trading lower. Just one, Apple, was trading higher.
Nvidia’s shares tumbled as much as 13 per cent after the opening bell Monday, erasing about $465 billion from the company’s market capitalization.