The Latest AI Updates from Nvidia, Amazon & DeepSeek

Artificial intelligence (AI) is back in the spotlight this week with key AI news emerging from two of the world’s largest economies, the US and China, as the rivalry over AI supremacy persists.

From Nvidia’s much-anticipated earnings results to Amazon’s GenAI debut and the rise of Chinese AI competitors beyond the controversial DeepSeek, here’s what you need to know about the latest AI updates:

Nvidia Stock Dips Despite the Earnings Beat

The AI giant Nvidia reported its quarterly earnings on Wednesday, 26 February, following an exceptional 2024, during which its stock surged amid the AI hype. 

Despite the earnings surpassing Wall Street's expectations, the company's stock experienced a modest decline in after-hours trading after the release of its fourth-quarter earnings report yesterday. 

In regular trading, Nvidia’s shares increased by 3.7%. However, following the earnings report, the stock dropped by 1.5% in after-hours trading, falling too $129.32.

Here are the main earnings highlights:

Nvidia posted adjusted earnings per share (EPS) of $0.89 on revenue of $39.3 billion, beating analyst forecasts of $0.84 per share and $38.2 billion in revenue. (Source: The Guardian)

A major contributor to the company's growth was its data centre business, which saw a remarkable 93% revenue increase, reaching $35.6 billion. This surge was primarily fueled by robust demand for AI processors.

Looking forward, Nvidia is forecasting first-quarter revenue of $43 billion, slightly above analysts' expectations of $41.78 billion. However, the stock's dip in after-hours trading may suggest investor caution, possibly due to concerns about industry overspending and heightened competition.

Only time will tell what actually lies ahead for this tech behemoth.

Alexa+: Amazon’s GenAI Debut

Amazon is another major player that is aiming for AI leadership. On Wednesday, the company unveiled Alexa+ at an event in NYC. This new version of Alexa is powered by Amazon’s large language models and those from Anthropic, a company Amazon has heavily invested in.

Priced at $19 per month (free for Amazon Prime users), Alexa+ aims to compete with Google’s Gemini and Microsoft’s ChatGPT. It was also revealed that Alexa+ offers personalised features like remembering household preferences and controlling devices with natural voice commands. It can also pull up Ring camera clips, assist with document queries, book rides, and answer detailed questions, making it much more versatile than previous versions.

Overall, Amazon has invested billions in generative AI and plans to spend over $100 billion on the technology by 2025.

Traders may also want to note that despite past struggles in the smart home space, Amazon remains optimistic about Alexa+'s potential to lead in AI. The product will launch in the US in the coming weeks, and traders will need to see what its actual impact will be.

Following the event, Amazon’s stock traded 2% higher.

Can China Rise to the AI Occasion?

Some argue that DeepSeek's recent release of AI models underscores China's growing technological prowess and unique AI development approach, which blends strategic investments, innovation, and regulation.

While major Chinese companies like Baidu, Alibaba, and Tencent remain dominant players in the country's tech industry, a new wave of smaller AI firms is emerging, each specialising in areas such as AI chips, healthcare, and image recognition. These companies are reportedly leveraging domestic data sources and focusing on practical applications, prioritising efficiency over sheer computational power.

Moreover, some experts believe that the Chinese government plays a key role in supporting this growth by providing funding, venture capital, and facilitating regulated data exchanges. The country’s strong emphasis on AI education, with many universities offering specialised programs, further reinforces China’s ambition to become a global leader in AI by 2030.

China’s regulatory framework is carefully crafted to balance innovation with oversight. DeepSeek’s success challenges the belief that large budgets and massive infrastructure are essential for AI breakthroughs, proving that even with fewer resources, significant progress is possible. This may offer valuable lessons for other nations seeking to nurture AI development while managing potential risks.

Ultimately, the future of AI may be shaped less by who leads the race and more by how countries approach its development. It will be interesting to see how China's advancements contribute to the ongoing US-China tensions and tech rivalry.

Conclusion

In conclusion, the AI landscape continues to evolve rapidly, with major players like Nvidia and Amazon making significant strides in the US. At the same time, China emerges as a powerful competitor through innovations like DeepSeek and growing investment in AI technologies. Despite Nvidia’s stock dip post-earnings, the company’s strong performance and optimistic forecast highlight its central role in the industry. Amazon’s debut of Alexa+ reflects its ambitious push into generative AI, positioning itself against rivals like Google and Microsoft. Meanwhile, China’s strategic development of AI models and its supportive regulatory environment suggest that the global race for AI supremacy is far from over, with diverse approaches shaping the future of this transformative technology.

*Past performance does not indicate future results.