DeepSeek, a Chinese AI chatbot developed for $5.6 million, has greatly impacted US financial markets. As a result, the tech-heavy Nasdaq fell 3.6%, its biggest drop since September. Furthermore, stock prices for key technology companies such as Nvidia and Microsoft fell sharply.
This occurred because investors were concerned that DeepSeek’s cost-effective methodology would damage the competitive advantages of American companies like OpenAI and Google. Nvidia’s stock fell 13%, while Microsoft lost 3.5% of its worth.
As a result, these losses amounted to a $1 trillion reduction in market capitalization for AI-focused stocks. Furthermore, researchers warn that if DeepSeek continues to produce breakthrough AI technology at a reduced cost, it will undoubtedly upset the sector and increase competition.” Stay current and connect with us on [Facebook: https://www.facebook.com/share/1An4REwgwy/?mibextid=wwXIfr].
