28.01.2025 17:37
Recognized for its leadership in the field of artificial intelligence, ChatGPT is facing challenges due to the rapid rise of its new competitor, DeepSeek. DeepSeek quickly gained popularity with its low-cost and innovative model, which has led to a significant drop in Nvidia's stock prices.
Known for its leadership in the field of artificial intelligence, ChatGPT has gained a strong competitor with the rapid rise of China's new application, DeepSeek. DeepSeek has reached millions of users in a short time, changing the balance in the industry and causing declines in technology stocks.
DeepSeek has become the most downloaded free application on the App Store in the USA, UK, and China, surpassing ChatGPT and other competitors. On January 20, DeepSeek introduced its open-source new AI model, DeepSeek-R1, which was developed at a much lower cost and with fewer chips compared to other AI applications. This innovative model was realized at a cost significantly lower than the budgets allocated by major tech companies for similar projects.
NVIDIA'S STOCKS LOST VALUE AFTER THE DEEPSEEK APPLICATION
On Friday, shares of the US-based chip manufacturer Nvidia, which were trading at $142.62, fell to $118. The daily loss in the chip giant's stock price reached approximately 17%. While Nvidia's shares experienced their largest daily drop since March 2020, the company's market value also decreased by over $500 billion.