Nvidia said Chinese artificial intelligence company DeepSeek's advancements highlight the demand for its chips in China, with future needs expected to grow, Reuters reported Monday.

The statement followed a drop in Nvidia's stock amid investor concerns that DeepSeek had achieved results comparable to OpenAI using significantly fewer Nvidia chips, according to the report.

DeepSeek reportedly used about 2,000 Nvidia H800 chips, in compliance with US export regulations aimed at restricting China's AI and supercomputer development, Reuters wrote.

"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 newswire cited Nvidia as saying.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)