The recovery came after US chipmaker Nvidia closed up 9 per cent on Tuesday, recouping some of the heavy losses that wiped $600bn off its market capitalisation at the start of the week, when investors fretted over the threat from China’s DeepSeek to the US supremacy in artificial intelligence.
DeepSeek topped the Apple App Store chart and sparked fears the Chinese company was quickly catching up with OpenAI's ChatGPT while costing far less.
DeepSeek's claims that it cost mere millions to build fanned fears that the huge investments into AI by U.S. firms are unwarranted and a bubble waiting to pop.
Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.
DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.
The launch and increasing popularity of DeepSeek spurred investors to dump tech stocks globally, with ripples felt from Tokyo to Amsterdam to Silicon Valley. Markets in tech-heavy South Korea and Taiwan are closed for the next few days for Lunar New Year. Mainland China is closed until Feb. 4, leaving the spotlight firmly on Japanese firms.
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Nvidia speaks out in support of DeepSeek’s AI models amid market crashNvidia faced a catastrophic 16.9% drop in its stock price today, its worst day on Wall Street since March 2020. The sell-off was caused by Chinese AI company
Shares in Nvidia, whose semiconductors power the AI industry, fell nearly 17 percent on Wall Street, erasing nearly $600 billion of its market value.
China’s DeepSeek challenges Nvidia and US tech leaders with cheaper AI, sparking market turbulence
Asian markets show mixed performance as Wall Street’s tech stocks fall amid concerns over Chinese AI competitor DeepSeek.
Major AI players, including Nvidia, Meta, Microsoft, and Alphabet, saw significant losses, with Nvidia shedding over 11% and losing $400 billion in market value. Analysts highlighted China’s growing challenge to US tech dominance.
US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten US dominance in the fast-growing industry.
Nvidia drops 12% as DeepSeek’s AI model challenges tech giants’ investments. Nasdaq 100 futures slide 3.5%; traders brace for Big Tech earnings.
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