DeepSeek R1 & The Short Case For Nvidia Stock | Jeffrey Emanuel

China’s new DeepSeek AI model, which reportedly matches GPT-4’s performance at 1/45th the cost, has rattled the AI hardware market and contributed to a 20% dip in Nvidia’s stock price. Investor-technologist Jeffrey Emanuel argues that DeepSeek’s efficiency gains aren’t the only story, as his viral 12,000-word article “The Short Case for Nvidia Stock” also catalyzed the market’s panic. In this episode, we explore how these converging factors could unbundle Nvidia’s once-unassailable lead and drastically reshape AI compute economics. Jeff's Article:  https://youtubetranscriptoptimizer.com/blog/05_the_short_case_for_nvda Jeff on X: https://x.com/doodlestein  ------ BANKLESS SPONSOR TOOLS: 🪙FRAX | SELF SUFFICIENT DeFi https://bankless.cc/Frax  🦄UNISWAP | BUG BOUNTY PROGRAM https://bankless.cc/Uniswap-Bug-Bounty  ⚖️ARBITRUM | SCALING ETHEREUM ⁠https://bankless.cc/Arbitrum  🛞MANTLE | MODULAR LAYER 2 NETWORK https://bankless.cc/Mantle  🌐CELO | BUILD TOGETHER AND PROSPER https://bankless.cc/Celo  🎮RONIN | THE FUTURE OF WEB3 GAMING https://bankless.cc/Ronin ----- ✨ Mint the episode on Zora ✨ https://zora.co/collect/base:0x4be6cd4d402fed49eb2de95fbc8e737e8ffd3e7f/23?referrer=0x077Fe9e96Aa9b20Bd36F1C6290f54F8717C5674E   ------ TIMESTAMPS 00:00 Start 05:20 Intro To Jeff 07:27 The Issue With DeepSeek 16:00 Inference Compute Explained 24:51 Nvidia's Competition 29:14 DeepSeek's Impact On Valuations 36:46 Criticism Around Jeff's Thesis 44:17 DeepSeek's 45x Upgrade 51:30 The Transformer Explained 01:03:15 Why Is Everyone Shocked? 01:12:07 Synthetic Data 01:21:30 Why Jeff's Article Went Viral ------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures⁠