28.01.2025 09:32
Chinese company DeepSeek has created a significant impact in the technology sector with its developed artificial intelligence model, causing the market value of the American chip manufacturer Nvidia to drop by over $500 billion. The model has earned the title of the most downloaded AI application, raising questions about the dominance of Western companies.
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The recent artificial intelligence model from Chinese company DeepSeek, developed with fewer chips and in a shorter time compared to its international competitors, has led to selling pressure in global technology stocks, while the market value of the American chip company Nvidia has decreased by over $500 billion.
GREATLY OUTPERFORMED AMERICAN COMPANIES
The rapid, low-cost development of the artificial intelligence model by the Chinese initiative, using a small number of chips compared to competitors like Google and OpenAI, has intensified selling pressure led by technology stocks as the model has started to be widely used globally in a short time. The model has become the most downloaded AI application, surpassing the US-based ChatGPT in app stores.
LOSS EXCEEDS $500 BILLION
The launch of a low-cost artificial intelligence model by China has raised doubts about the dominance of Western companies, particularly in the US, in the sector and their significant expenditures in this area. The stock price of American chip giant Nvidia, which closed at $142.62 on Friday, fell to $117.26 today. The one-day loss in the chip company's shares approached 18%. Nvidia's shares experienced their highest daily loss since March 2020, while the company's market value decreased by over $500 billion. The decline in the company's market value has been recorded as the largest daily drop in US stock market history. With a market value dropping below $3 trillion, Nvidia fell from second to third place in the ranking of the world's largest companies.
TRUMP ON CHINESE DEEPSEEK: 'THE TIME FOR THE "AWAKENING AGE" HAS COME'
US President Donald Trump expressed that he views the latest artificial intelligence model launched by the China-based DeepSeek positively, stating that it should serve as a "call to awakening" for the American industry.
In a speech at a party gathering in Florida with Republican members of Congress, Trump commented on the artificial intelligence model from the Chinese initiative DeepSeek. He noted that he had read in recent days that the Chinese company had developed a faster and much more cost-effective artificial intelligence model, saying, "This is a good thing because you don't have to spend so much money."
"I SEE IT AS A POSITIVE THING"
Trump emphasized that he sees this as a positive and valuable development, stating, "If this is true, which no one knows if it is, I see it as a positive thing because you will do this too. Thus, you won't spend too much, and hopefully, you will get the same result. The launch of DeepSeek by a Chinese company should be a call to awakening for our industries that we need to focus on competing to win."
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