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Maia Salti
Maia Salti

Posted on • Originally published at maiatalksabout.ai on

The AI Scaling Law and DeepSeek

NVIDIA's Crash

On January 27th, 2025, NVIDIA lost 589 billion US dollars in market cap in one day, the largest one-day loss for any company in US history, beating its own prior record of 279 billion in September 2024. The broader tech/AI market lost about 1 trillion USD that day.

Compute

Initially a company that sold computer chips for game rendering, NVIDIA now sells GPUs to the companies that create the frontier models and provide them with the compute they need to function. Compute has been a scarce asset for many of these competing companies (Anthropic, OpenAI, Google, Meta).

The Scaling Law

Model capability has been known to scale predictably with compute.


This is a preview of a post from my blog. Read the full post with the interactive charts →

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