Why Nvidia is Down, the DeepSeek Saga Ends with ChatGPT4.5’s Unveiling Confirming Worst Fears

I think one reason no one is talking about which caused for Nvidia to go down is the continuation of fears that Deepseek caused, but the further confirmation of those fears with OpenAI’s release of ChatGPT4.5, which was a major letdown due to it being so expensive and not even SoTA or top of the benchmarks like everyone hoped for to show the proof that the models are still scaling.

This ChatGPT4.5 moment marks the end of the era of AI scaling purely from pre-training compute and therefore cast doubt on the entire projected trajectory of AI making massive leaps in increasing intelligence and there for real meaningful applications with AI, which Microsoft CEO Satya Nadella also mentioned which was that AI currently has no real meaningful applications.

Based on this, I think this raises a fundamental concern on the sustainability of the AI growth trend and brings out a potential of a much broader weakening for the AI related companies and tech sector. Which would spell a larger looming crisis if the rest of the market cannot uphold the overall economy without the AI story in the backdrop which has been the single dominant narrative and crutch for an overall weakening economy.