Nvidia Stock (NVDA) Takes Battle to DeepSeek as AI Chips Go Full Speed Ahead

Semiconductor giant Nvidia (NVDA) is battling back against its Chinese rivals by becoming more efficient at training AI models, according to new data.

Chips Ahead

MLCommons, a nonprofit group, has released new data showing that Nvidia’s newest type of chips have made AI training gains. The number of chips required to do the jobs has apparently dropped dramatically.

The data shows how chips fared at training AI systems such as Llama 3.1 405B, an open-source AI model released by Meta Platforms (META) that has a large enough number of what are known as “parameters”. These give an indication of how the chips would perform at some of the most complex training tasks in the world.

The data showed that Nvidia’s new Blackwell chips are, on a per-chip basis, more than twice as fast as the previous generation of Hopper chips.

In the fastest results for Nvidia’s new chips, 2,496 Blackwell chips completed the training test in 27 minutes. It took more than three times that many of Nvidia’s previous generation of chips to get a faster time.

China Challenge

This puts Nvidia in a prime position to challenge rivals such as China’s DeepSeek, which claims to use far fewer chips than U.S. rivals.

Chetan Kapoor, chief product officer for CoreWeave (CRWV), which worked with Nvidia to produce some of the results, said there has been a trend in the AI industry toward stringing together smaller groups of chips into subsystems for separate AI training tasks, rather than creating homogeneous groups of 100,000 chips or more.

“Using a methodology like that, they’re able to continue to accelerate or reduce the time to train some of these crazy, multi-trillion parameter model sizes,” Kapoor said.

Nvidia stock was largely unmoved by the results, dropping 0.4% in early trading.

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