On January 25th of this year, Nvidia's market value underwent a seismic drop of 17% overnight, erasing nearly $600 billion (roughly RMB 4.3 trillion) in value—a record-breaking plunge.

The culprit behind this precipitous decline was China's Deepseek, which unveiled AI models that rivaled OpenAI's at an astonishingly low training cost, cementing their global standing.

This development sparked widespread skepticism about the conventional wisdom surrounding AI chips. It seemed AI might not require as many chips as previously thought, suggesting that Nvidia had been overvalued. The prospect of everyone adopting Deepseek's approach loomed large, threatening a global glut of AI chips.

Nvidia's share price tumble reverberated through the industry, dragging down stocks of TSMC, Broadcom, and other related companies.

Yet, despite the severe blow dealt that fateful night, Nvidia has since staged a remarkable recovery, nearing its former peaks.

In terms of market value, the company has almost regained all the ground lost during the January 25th crash, positioning itself once again at a high point.

This remarkable turnaround can be attributed, in no small part, to Musk. By launching his xAI company's latest Grok3 model, Musk reaffirmed Nvidia's value in the AI sphere, effectively rescuing the company.

Grok3, with its impressive capabilities, has outperformed nearly all competitors across multiple domains, including OpenAI and Deepseek. Unlike Deepseek, Grok3 heavily utilizes AI chips, employing 200,000 H100s, making it the largest model to date in terms of AI chip integration, embodying the principle of "great effort leading to miracles."

With this monumental accumulation of graphics cards, Grok3 has demonstrated remarkable performance, reinforcing the belief that the Scaling Law remains relevant in AI and that there is no oversupply of AI chips.

As a result, Nvidia's stock has continued to soar, validating its valuation logic. However, the emergence of both Deepseek and Grok3 hints at future disagreements within the AI model landscape. The industry will no longer uniformly emphasize the stacking of AI chips.

Some companies will emulate Deepseek, prioritizing efficiency over quantity by using fewer AI chips. Others, with the financial means and resources, will follow Grok3's lead, continuing to stack AI cards extensively.

Regardless of this divergence, Nvidia has reaffirmed its position and is poised for continued success. AI chips remain highly sought-after and difficult to obtain, and Musk's Grok3 has undeniably proven their value.