NVIDIA's free fall 📉

Open-source, open panic

January 29, 2025

Welcome back! Welp…NVIDIA’s stock tanked 17% earlier this week, and the blame falls on none other than DeepSeek. But here’s the thing: DeepSeek isn’t a competitor. It’s an open-source AI model trained on NVIDIA’s GPUs, running on hardware many users still buy from NVIDIA.

The market panicked, but should it have? Let’s break this down.

DeepSeek rewrites the AI playbook

Liang Wenfeng, DeepSeek AI CEO (Via Gulf News)

Imagine spending $5.6 million to achieve what OpenAI spent hundreds of millions on. That’s DeepSeek, a new chatbot that has sent the tech world into chaos this week (and it’s only Wednesday). It’s a model so efficient it not only toppled ChatGPT as Apple’s top app but also sent Nvidia’s stock spiraling (see above).

So what’s special about DeepSeek? While giants like OpenAI and Meta burn through billions of dollars, DeepSeek is rivaling GPT-4 with a fraction of the resources.

But…there’s always a but.

  • OpenAI alleged that DeepSeek used its proprietary models to train its own open-source LLM, called R1. OpenAI said that could be a breach of intellectual property.

  • And? DeepSeek was hit by a cyberattack this week, forcing it to limit new sign-ups​. The incident highlights a growing tension in open-source AI models like R1—the balance between security/accessibility and cutting-edge tech.

Why it matters: DeepSeek isn’t just disrupting AI economics; it’s raising hard questions about how far open-source models can go without running into major risks. This is a case study in innovation meeting the limits of its own openness. No matter how the next couple of weeks go for DeepSeek, the tech world is paying close attention.

Perplexity’s TikTok play is a big swing

Perplexity AI wants to merge with TikTok in the US, offering a deal that would give the American government up to a 50% stake in the combined entity. It would be an interesting chapter in what’s been a wild 2025 for TikTok (banned, unbanned, now who knows).

Why it matters: As a merged entity, the companies could potentially blend AI reasoning with viral content. Perplexity’s natural language capabilities could make TikTok into a search and discovery powerhouse—even more than it already is, compared to its social platform peers. And…it could create an interesting blueprint for how governments and AI companies coexist.

Haptikos gives XR a tactile edge

What if you could feel the virtual world? Haptikos’ new hand exoskeleton makes that possible, letting users grab, hold, and interact with digital objects like they’re real.

Where it works:

  • Gaming: Forget controllers—imagine gripping a sword or throwing a ball in VR.

  • Training: Simulate high-stakes environments like surgery or manufacturing with physical feedback.

Why it matters: Virtual reality is no longer just what you see. Haptikos is closing the gap between XR and the physical world, turning immersive environments into ones you can actually touch.

Dictation, minus the fluff

Via TalkTec

TalkText turns your voice into clear, polished text. Dictate anywhere, and it cleans up the “ums” and self-corrections, so you sound like you wrote it by hand.

How you can use it:

  • Write faster emails: Dictate messages, and TalkText automatically refines them for clarity and professionalism.

  • Capture ideas while working: Speak your thoughts into any app, like a note-taking tool or document editor, and let TalkText do the rest.

  • Rewrite text instantly: Highlight any text and adjust its tone to be more confident or conversational.

Pricing: Free for 2,000 words/month; Unlimited plan: $10/month or $6.50/month billed annually​

Text into visuals in no time

Napkin AI takes your words and transforms them into infographics, diagrams, and presentations. Perfect for anyone who needs to communicate complex ideas visually but doesn’t have time for design work.

How you can use it:

  • Convert notes into slideshows for client presentations or investor meetings

  • Build diagrams to map out project plans or team workflows

  • Use flowcharts or infographics to explain technical or abstract ideas

Pricing: Starter plan free; professional plan free during Beta

Jobs, announcements, and big ideas

  • There was no shortage of crazy NVIDIA announcements out of CES. Here's what excited me most.*

  • OpenAI launches a version of ChatGPT for US government agencies

  • Roblox is hiring a Senior Product Manager to drive the vision for content understanding and generative AI.

  • Join BetterUp as a Senior Product Manager to leverage AI in the future of coaching.

  • LinkedIn founder Reid Hoffman sees a bright AI future—are you ready to join the movement?

  • Is Apple too late to the game on smart glasses?

*This is sponsored advertising content.

The $5M AI that shook NVIDIA. DeepSeek tanked NVIDIA’s stock this week. Watch along as I explain the market freakout and what it means for the AI race.

Opening the AI floodgates: Here’s everything you need to know about project Stargate and where the $500 billion is going—the latest episode of The Next Wave.

Thanks for reading! This DeepSeek story proves one thing: AI’s future won’t just belong to the big spenders. It’ll belong to the scrappy innovators, too.

What excites you most about these shifts? Hit reply—I’d love to hear your take.

—Matt (FutureTools.io)

P.S. This newsletter is 100% written by a human. Okay, maybe 96%.