The launch of DeepSeek’s most cost-effective AI assistant in China works more like a shockwave through the global market. This led to a record $593 billion beating for Nvidia and a 3.1% drop in the Nasdaq. The investors recalibrated the importance of the tech industry and the AI landscape profoundly.
DeepSeek AI is a low-cost Chinese artificial intelligence (AI) start-up from Hangzhou. It has rattled the United States tech stocks along with global stock markets. Thanking the value of chip maker Nvidia by as much as $593 billion overnight. This is a record of 17% one-day loss for it. According to the LSEG data is a record one-day mcap loss for a Wall Street stock in history.
Due to AI’s disruption, Jensen Huang’s Nvidia faces the hardest time. The scenario is unpleasant across the board. The Nasdaq slumped over 3%. Fearing costly US works in the AI tech against reportedly comparable Chinese alternatives.
Chinese start-up DeepSeek launched a free AI assistant last week. It claims that fewer uses of data fractions beat the possibilities of the other existing alternatives like ChatGPT, Google’s Gemini, and many others.
By January 27, DeepSeek AI had overtaken the features of ChatGPT in terms of downloads from the US iOS Apple’s app store. DeepSeek surpasses ChatGPT in several regions, including the UK, Canada, Australia, China, and Singapore.
DeepSeek’s models include the DeepSeek-V3 and DeepSeek-R1. Very little information is available about the Hangzhou startup behind DeepSeek. The majority is owned by Liang Wenfeng the co-founder of the quantitative hedge fund High-Flyer.
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