Chinas Deepseek shocked Nvidia: $ 600 billion!

Chinas Deepseek shocked Nvidia: $ 600 billion!

china's emerging AI company Deepseek after recently developed a AI model that is comparable to Openaai’s chatt. According to a report by Al Jazera experienced NVIDIA, a leading company in the field of artificial intelligence, a dramatic decline in its market value for almost 600 billion US dollars, which represents the greatest loss in a single day in the history of the stock market.

The development costs for deepseek were only $ 6 million, while large US companies are planning combined investments of around 1 trillion USD in AI. Critics notice that Deepseek's market launch to devalue the share prices of important tech companies such as Nvidia (17% decline) and ASML (6% decline) led, which increases uncertainty about the future role of the United States in the global AI market. This was reported by CBS News

The rise of deepseek

Deepseek was founded in July 2023 by Liang Wenfeng, a graduate from the Zhejiang University, and uses Nvidia A100 chips that are currently banned for export to China. The AI ​​app was the most downloaded app in the Apple App Store on Monday, which underlines the great increase in interest. Experts compare Deepseek's technology directly with that of Openai, which could significantly shift the competitive conditions in the AI ​​landscape.

Liang Wenfeng has around $ 8 billion in assets with which he financed Deepseek. The company uses innovative techniques such as "Inference-Time Computing" to reduce costs and computing power, but also impresses numerous analysts and investors. The concern for data protection is loud, since Deepseek stores user data on servers in China.

effects on the market

Market development in artificial intelligence shows a strong growth potential. As from Fortune Business insights , the market for artificial intelligence is expected Billions of USD grow by 2032, which corresponds to an annual growth rate of 20.4 %. North America is currently holding 41.23 % of the market share, but due to developments in the Asian-Pacific area, considerable growth options will be seen.

The relevance and the new developments in the AI ​​sector, including the introduction of cost-effective AI tools through Deepseek, lead to a rethink in the industry. This could negatively influence the strategies of large companies such as Nvidia and ASML, while smaller providers gain the ground. Against the background of these challenges, the need to promote innovation and ensure data protection and trust for companies in the AI ​​industry is becoming more and more urgent.