Chinese AI startup DeepSeek's impressive performance and competitive pricing triggered a sell-off in AI-related stocks, leading to a significant decline in Nvidia CEO Jensen Huang's net worth. The company's free chatbot app topped Apple's US App Store, raising concerns about the potential disruption to the market for AI hardware.
Nvidia CEO Jensen Huang experienced a significant drop in his net worth, losing nearly 20%, or approximately $21 billion, following the emergence of Chinese AI startup DeepSeek. This decline coincided with a widespread sell-off in AI-related stocks on Monday, triggered by DeepSeek's impressive performance and competitive pricing. Huang's net worth fell from $121 billion to around $100 billion, according to the Bloomberg Billionaires Index.
Nvidia shares plunged by nearly 17% on Monday, wiping out nearly $600 billion in market value. Although the shares have since recovered slightly, rising by 1.51% in after-hour trading, the initial sell-off reflects investor concerns about DeepSeek's potential to disrupt the market for AI hardware, particularly Nvidia's high-performance GPUs.DeepSeek's free chatbot app surged to the top spot on Apple's US App Store's ranking on Monday, demonstrating its rapid rise and user appeal. The startup's ability to develop high-performing AI models at a fraction of the cost of established players like Nvidia has raised concerns about a potential shift in the AI landscape. This development has not gone unnoticed by political leaders. Former President Donald Trump, during a meeting with GOP lawmakers, lauded DeepSeek as both a 'positive' and a 'wake-up call' for American tech companies, urging them to focus on competing effectively in the AI arena
Business AI Deepseek Nvidia Jensen Huang Stock Market Tech Industry
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DeepSeek vs. ChatGPT: Hands On With DeepSeek’s R1 ChatbotDeekSeek’s chatbot with the R1 model is a stunning release from the Chinese startup. While it’s an innovation in training efficiency, hallucinations still run rampant.
Read more »
Nvidia shares spooked as China’s DeepSeek raises questions over AI capexNvidia shares spooked as China’s DeepSeek raises questions over AI capex
Read more »
Nvidia shares slide 5% as China’s DeepSeek sparks questions over AI-related capexNvidia shares slide 5% as China’s DeepSeek sparks questions over AI-related capex
Read more »
Nvidia shares drop as investors assess implications of DeepSeek launchNvidia shares drop as investors assess implications of DeepSeek launch
Read more »
Nvidia falls 10% in premarket trading as China's DeepSeek triggers global tech sell-offDeepSeek 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.
Read more »
The DeepSeek sell-off: What major analysts are saying about Nvidia, possible AI bubble poppingDespite the deep losses in Nvidia, many analysts saw it as a buying opportunity.
Read more »