Nvidia, which lost $598 billion in market capitalization on Monday, the biggest market loss in US history, lauded China's new AI startup DeepSeek.
"DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling," an Nvidia spokesperson told CNBC on Monday.
"DeepSeek's work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant," the spokesperson said, describing the startup's R1 model "an excellent AI advancement."
DeepSeek unveiled its free open-source large language model last week, which uses Nvidia chips to train its systems.
The Nvidia spokesperson told CNBC that the Nvidia GPUs that DeepSeek used in its training were fully export-compliant, countering comments made by Scale AI CEO Alexandr Wang last week that the GPUs used by DeepSeek are banned in China.
Nvidia's shares pared losses on Tuesday, gaining 8.8% after shedding 17% on Monday amid the tech selloff triggered by DeepSeek.
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