DeepSeek’s Disruptive AI Model Triggers $1 Trillion Loss in Tech Stocks
The technology sector is facing significant turbulence following the launch of DeepSeek, a Chinese AI startup's cost-effective large language model. This development has led to a substantial decline in tech stocks, with market capitalization losses potentially reaching $1.2 trillion.
Nvidia, a leading microprocessor manufacturer, experienced a dramatic drop of over 12% in its stock price, resulting in a market value loss exceeding $400 billion. This marks the largest single-day devaluation in the company's history.
The introduction of DeepSeek's AI model, which offers comparable capabilities to existing models at a fraction of the cost, has raised concerns about the sustainability of current AI infrastructure investments. Analysts suggest that this development could prompt a reev...