Pat Gelsinger, former CEO of Intel (NASDAQ:INTC) just made a bold movebuying Nvidia (NASDAQ:NVDA) stock as it dipped on fears surrounding DeepSeek’s game-changing AI breakthrough. The market panicked after learning DeepSeek built a cutting-edge AI assistant for just $6 million, sending Nvidia and other AI giants into a selloff. But Gelsinger isn’t buying the doomsday narrative. Instead, he sees an AI market that’s about to explode. His take? Making AI cheaper doesn’t shrink demandit fuels adoption. More accessibility means more AI everywhere, and that’s a long-term win for high-performance computing.
Gelsinger has seen this movie before. From PCs to mobile to cloud, every major tech leap started with costs dropping and markets expanding. He points to DeepSeek as proof that constraints drive breakthroughsits engineers pulled off a world-class model with limited resources, much like past innovators who thrived under pressure. But efficiency isn’t replacing the need for powerhouse computing. Training cutting-edge AI still requires massive processing power, keeping demand high for Nvidia’s chips. He also warns that closing off AI research will stifle progress, arguing that open ecosystems have always fueled the biggest tech revolutions.
So, does DeepSeek spell trouble for Nvidia? Not exactly. This isn’t a winner-takes-all scenarioit’s an evolution. AI is splitting into two camps: efficiency-driven disruptors like DeepSeek and compute-heavy giants like OpenAI and Anthropic. Both will push the industry forward in different ways. As Nvidia’s stock stabilizes, Gelsinger’s contrarian bet sends a clear messagedon’t get caught up in short-term panic. The AI boom isn’t slowing down. It’s just getting started.
This article first appeared on GuruFocus.
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