The impact created by DeepSeek caused Nvidia's market value to drop by half a trillion dollars
The fact that Chinese startup DeepSeek's latest artificial intelligence model was developed in a short time using fewer chips compared to its international competitors has led to selling pressure on global technology stocks, while the market value of the US chip company Nvidia has decreased by over 500 billion dollars.
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The rapid and widespread global adoption of the artificial intelligence model developed by the Chinese startup—which was created in a shorter time, at a lower cost, and with fewer chips than competitors like Google and OpenAI—has led to deepening selling pressure, led by technology stocks.
The model has also surpassed the US-based ChatGPT in app stores to become the most downloaded artificial intelligence application.
China's release of a low-cost artificial intelligence model has raised doubts about the dominance of Western companies, particularly those in the US, in the sector and the massive expenditures they have made in this field.
The share price of US chip giant Nvidia, which was 142.62 dollars at Friday's close, fell to as low as 117.26 dollars today. The one-day loss in the chip company's shares approached 18 percent.
While Nvidia's shares saw their largest daily loss since March 2020, the company's market value also decreased by over 500 billion dollars.
The decline in the company's market value was recorded as the largest single-day drop in US stock market history.
With its market value falling below 3 trillion dollars, Nvidia dropped from second to third place in the ranking of the world's largest companies.