Ex-CEO of Intel, Pat Gelsinger, has come out praising China's new DeepSeek R1 model: also announces he's buying the dip with cheap NVIDIA shares.

The tech industry's reaction to AI model DeepSeek R1 has been wild. Pat Gelsinger, for instance, is elated and thinks it will make AI better for everyone.

The superstar run for Nvidia’s stock the last few years has been astonishing. So was its tumble Monday, which caused $595 billion in wealth to vanish.

Retired Intel CEO Pat Gelsinger said "the markets are getting it wrong" Monday after investors triggered a sell-off in response to China's DeepSeek.

The industry expects the resource-light new model could usher in a wave of more efficient AI models, hurting demand for AI hardware.

However, ex-Intel CEO Pat Gelsinger argues that compute performance is never enough and that high demand for processors from tech giants will remain. The reaction to DeepSeek's breakthrough has overlooked three critical lessons from five decades of computing,

D eepSeek made quite a splash in the AI industry by training its Mixture-of-Experts (MoE) language model with 671 billion parameters using a cluster featuring 2,048 Nvidia H800 GP

The first takeaway, then, is that Valve and Intel are collaborating to tackle this, which is encouraging. With the strong integrated graphics performance of Intel’s Lunar Lake, this paves the way for supporting SteamOS on MSI’s Claw 8 AI+ and future handhelds adopting Intel processors.

Nvidia's share price fell some 17 percent on Monday, wiping $600 billion off of the GPU company's valuation. The world's most valuable corporation saw its share price plummet on the release of DeepSeek's latest model, which proved that it was possible to train efficient models using fewer GPUs.

Nvidia ( NVDA -3.12%), a leading semiconductor company, has seen its share price soar 500% over the past three years, pushing its market cap up to a staggering $3.6 trillion. While Apple was the largest company by market cap earlier this year, as I write this, Nvidia holds the spot.

For the desktop, Intel envisages a module for the CPU, a little like the CPU cartridges of yesteryear, that presumably makes a CPU replacement less scary than messing with a fully exposed socket and an array of fragile pins. Intel has tried to get CPU modules going for years now, such as the Compute Element in previous years' NUCs.

Analyst critiques Intel's overvaluation and strategic challenges, highlighting the impact on share price and potential risks for investors.