<aside> <img src="/icons/circle-dashed_purple.svg" alt="/icons/circle-dashed_purple.svg" width="40px" />

"This kills NVIDIA's business"

</aside>

Reality

• Explanation: A lot of tech analysts and Microsoft CEO Satya Nadella believe in Jevon’s Paradox, which in this context says more efficient AI - like DeepSeek - is likely to increase overall demand of AI solutions.
  • Basically as costs decreases, usage increases. So in the long run, there might be more demand for NVIDIA’s chips.
• Analogy: It’s like when we got cheaper smartphones, it actually increased demand for premium phone processors (like Qualcomm chips) because more people entered the market.