Reported 1 day ago
Chinese AI startup DeepSeek's new model has caused a dramatic $1 trillion drop in US and European tech stocks as investors reassess inflated valuations. The app quickly topped Apple's charts, raising doubts about the hefty investments by major tech companies in AI technologies. Nvidia's stock fell significantly, resulting in a potential market value loss of $340 billion, with overall market losses projected at $1.2 trillion for tech indices if the trends hold. Analysts suggest DeepSeek's success challenges the current reliance on expensive AI solutions and highlights the emerging competition from China's tech firms.
Source: YAHOO