Nvidia is touting the performance of DeepSeek’s open source AI models on its just-launched RTX 50-series GPUs, claiming that they can “run the DeepSeek family of distilled models faster than anything on the PC market.” But this announcement from Nvidia might be somewhat missing the point.

China’s DeepSeek says it trained an AI model for less than $6 million. This is as big U.S. tech companies have poured billions of dollars into AI chips and systems for their projects.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Nvidia's H800 was launched in March 2023 and is a cut-down version of the H100 It is also significantly slower than Nvidia's H200 and AMD's Instinct range These artificial constraints have forced DeepSeek's engineering to innovate It was widely assumed that the United States would remain unchallenged as the global AI superpower,

Nvidia’s AI leadership remains intact, despite DeepSeek concerns. Read why NVDA stock’s steep drop represents a great opportunity for long-term investors.