Scrapping export restrictions on top-of-the-line GPU chips because of DeepSeek's s AI success would hand China a major win, says Toner.

After spending years indiscriminately ripping off other people's work, OpenAI is trying to pin blame on Chinese AI startup DeepSeek.

DeepSeek, a Chinese AI startup, has rapidly ascended to prominence, challenging established AI chatbots like Google Gemini and ChatGPT. Its flagship AI model, R1, has achieved remarkable performance using significantly less computational power than its competitors.

Importantly, several Wall Street analysts have updated or reiterated their forecasts since DeepSeek published its research paper last week, and they all see upside in Nvidia stock from its current price of $128 per share. Gil Luria at D.A. Davidson set his target price at $135 per share, implying a 5% upside.

On Thursday, OpenAI announced that it is deepening its ties with US government through a partnership with the National Laboratories and expects to use AI to "supercharge" research across a wide range of fields to better serve the public.

Nvidia shares' 9% recovery Tuesday was the second-best day in terms of market cap added for any company ever—but the company faced another selloff Wednesday.

Data center technology spending skyrocketed 34 percent in 2024, according to Synergy Research Group. It is soaring past a half a trillion dollars in the first month of 2025 as banks and technology vendors vie to build out massive AI compute.

OpenAI is in talks for an investment round to raise nearly $40 billion that would value the AI startup at up to $340 billion, the Wall Street Journal reported on Thursday.

The government formally began its push to build a foundational AI model on Thursday. This and more in todays ETtech Morning Dispatch.

The introduction of DeepSeek has caused a stock slump among major AI players, led by chipmaker Nvidia (NVDA) , since it could severely crimp demand for Nvidia’s pricey AI chips, which are crucial to its business.