Elon Musk "adds the final brick," NVIDIA recovers all losses from the "DeepSeek impact"

NVIDIA successfully navigated the "DeepSeek crisis," and GPU demand is expected to remain strong.

Although it suffered a heavy blow three weeks ago due to the impact of DeepSeek, NVIDIA has regained its footing with the boost from the newly launched Grok 3, closing up 0.4% overnight to $139.4.

In January 2025, Chinese AI company DeepSeek made breakthrough progress in AI efficiency, causing a market shock that led to a sharp decline in NVIDIA's stock price, with its market value evaporating by nearly $500 billion at one point. However, major tech companies did not cut back on their investment plans in the AI sector; instead, they continued to bet on NVIDIA's technology.

On February 18th local time, Elon Musk's xAI officially released the Grok 3 large model, which outperformed or matched competitors like Gemini, DeepSeek, and ChatGPT. According to the press conference, xAI doubled its data center capacity in just three months, utilizing 200,000 NVIDIA H100 GPUs to create the best AI, with future GPU capacity potentially expanding to 1 million units.

Musk's team also stated that they have reached a $5 billion agreement with Dell, which may deliver servers equipped with NVIDIA's GB200 chips to xAI this year.

NVIDIA's Core Advantage: More Than Just Chips

Although companies like Amazon are developing their own AI chips, NVIDIA's founder and CEO Jensen Huang emphasized that NVIDIA offers not just AI chips, but a comprehensive AI platform. Its CUDA software platform is widely popular among AI developers and is only compatible with NVIDIA's own chips.

While DeepSeek's breakthroughs have accelerated the U.S. efforts to improve AI efficiency, they have not changed the industry's large-scale procurement of NVIDIA hardware. Some believe this proves that the path to leading AI technology still requires going through NVIDIA, a situation that seems unlikely to change in the foreseeable future.

In addition to tech giants, several national agencies are also ramping up their involvement, further driving the global AI arms race and increasing demand for NVIDIA GPUs.

According to a report by The Wall Street Journal on the 18th, investment group Stock Farm Road plans to build one of the world's largest artificial intelligence data centers in South Korea, creating a "Korean version of Stargate." The project is initially set to invest $10 billion, with a long-term investment of up to $35 billion, and will provide up to 3 gigawatts of power, almost three times the capacity of the Texas data center complex funded by the U.S. "Stargate" project.**

Hargreaves Lansdown analyst Matt Britzman stated that this is another sign that "NVIDIA's demand far exceeds that of American tech giants":

"We are now seeing multiple countries express a willingness to build their own computing clusters, with the large-scale American Stargate project being the most eye-catching. This supports NVIDIA's investment case and provides a relatively new and scalable demand channel for its market-leading chips."