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Gbeminiyi Ogunleye
2 months ago
Overview
AI: What next as tech stocks sink deep amid Chinas Deepseek market disruption
A broad elloff saw tech stocks sinking deep on Monday after DeepSeek sent shockwaves through Silicon Valley as the Chinese artificial-intelligence startup said it trained high-performing AI models cheaply.
DeepSeek, a one-year-old startup, presented a ChatGPT-like AI model called R1, which has all the abilities of other models. However, it is operating at a fraction of the cost of OpenAI’s, Google’s and Meta’s popular AI models.
On Monday, DeepSeek’s AI assistant rapidly overtook ChatGPT as the most popular free app in Apple’s US and UK app stores, with attendant impact on the presumed dominance of the AI ecosystem by US companies.
US stocks dropped sharply by the close of business on Monday, with the tech-heavy Nasdaq dropping 3% and chipmaker Nvidia losing nearly $589 billion—or 17%, considered the biggest daily decline in dollars for a publicly listed company—in market value, as the frenzy generated by the Chinese startup reached its crescendo.
