Donald Trump has called China's new AI model, DeepSeek, a "wake-up call" for the U.S. tech sector following Nvidia's significant market value decline of nearly $600 billion.
DeepSeek's arrival triggered a sharp drop in AI-focused company stock prices. Nvidia, a major GPU supplier for AI models, suffered the most, experiencing a 16.86% share plunge—a record on Wall Street. Microsoft, Meta Platforms, Alphabet (Google's parent company), and Dell Technologies also saw declines ranging from 2.1% to 8.7%.
Although this claim is contested, DeepSeek has raised concerns about the massive AI investments of American tech giants, unsettling investors. Its popularity is evident in its rapid ascent to the top of the U.S. free app download charts, fueled by growing discussions about its capabilities.
Sheldon Fernandez, co-founder of DarwinAI, commented to CBC News, stating that DeepSeek's performance rivals leading Silicon Valley models, and in some instances, surpasses them, all while using a fraction of the resources. He highlighted the disruption to existing business models, particularly the pricing strategies used to justify high valuations.
President Trump, however, offered a more optimistic perspective, suggesting DeepSeek could be beneficial to the U.S. by potentially reducing development costs while achieving comparable results. He emphasized the importance of cost-effectiveness in AI development while maintaining confidence in U.S. AI dominance.
Despite DeepSeek's impact, Nvidia remains a $2.90 trillion company. The company is poised to release its highly anticipated RTX 5090 and RTX 5080 GPUs later this week, generating such high demand that consumers are already braving cold weather to camp outside stores.
Latest Downloads
Downlaod
Top News
