When you purchase through links on our site, we may earn an affiliate commission. This doesn’t affect our editorial independence.
There is a new buzzword in the technology domain. Chinese startup, Deepseek just dropped an AI model that’s giving the big US tech giants a serious run for their money. The ripples generated by the launch of Deepseek have resulted in the crash of tech stocks, with Nvidia shares getting hit the hardest.
Nvidia Shares Value Crashes by 15% or $500 Billion
Nvidia’s shares nosedived over 15% at one point, wiping out a mind-blowing half a trillion dollars in value. Nasdaq also recorded a 3% share drop, and even Microsoft and Alphabet (Google’s parent company) weren’t spared.
What Edge Does Deepseek Have?
Deepseek, the little-known Chinese startup built a chatbot that’s just as smart as the top US models—but for a way lesser cost compared to what OpenAI, Google, and others are spending. DeepSeek says it costs them just $5.6 million to develop their AI. Meanwhile, US companies have expended billions of dollars to develop AI.
US Tech Experts Express Concerns
Kathleen Brooks from XTB says China is seriously challenging US tech dominance now. Marc Andreessen compared DeepSeek’s rise to the Sputnik moment when the Soviets shocked the world by launching the first satellite in 1957.
Check Out Our Previous Posts:
Nvidia Set to Acquire Lepton AI, After Acquiring Gretel Last Week
The Market Panics – AI Stocks in Freefall
US investors are rethinking the whole AI hype around AI and cutting investments. Broadcom dropped 16%, ASML fell 6.7%, and the S&P 500 lost 1.7% of value.
Trump’s $500 Billion AI Plan
Just last week, Trump announced a massive $500 billion AI project, backed by SoftBank and OpenAI, to keep the US ahead in the AI race. But now, with DeepSeek’s entrance into the scene, people are wondering if it is already too late for the US.
It’s hard to foretell how exactly the AI race will evolve. It’s getting more intriguing by the day. We will keep a close on the AI and technology scene as things unfold.
