Today, financial markets experienced significant shocks caused by unexpected events in the technology and artificial intelligence sectors. The key catalyst was the Chinese startup DeepSeek, which introduced an innovative artificial intelligence model, leading to a sharp decline in the stocks of leading US tech companies, especially Nvidia, as well as a decrease in the price of Bitcoin. And although DeepSeek did not appear until today, it certainly made a lot of noise.
Morning news: Emergence of DeepSeek
Today, several major American media outlets published articles about the Chinese company DeepSeek, which released a new artificial intelligence language model capable of competing with leading Western counterparts a few weeks ago. The efficiency of the model attracted special attention: it was developed for less than $6 million and did not require the use of advanced Nvidia chips. This event raised concerns among investors about the competitiveness of American tech giants.
Market reaction: Fall of Nvidia stocks
After the opening of American exchanges, the Nasdaq 100 fell by 3.6% compared to the previous trading session. Nvidia stocks were particularly hard hit, dropping by 12.94%, marking the largest single-day decline in the company's history. Investors began to reassess their expectations regarding Nvidia's future earnings in light of the potential decrease in demand for its products due to new developments from China.
Daily events: Spread of panic
Throughout the day, negative sentiments intensified. Stocks of other tech giants, such as Microsoft, Meta, and Tesla, also showed significant declines. The total loss of market capitalization for American tech companies approached $1 trillion. Analysts began to speak of a 'satellite moment' for artificial intelligence, comparing the current event to the launch of the USSR's first satellite in 1957, which cast doubt on the technological superiority of the USA.
Impact on cryptocurrencies: Drop in Bitcoin
The price of Bitcoin #BTC also did not remain aloof from the overall trend. Throughout the day, its value decreased by 6%, reaching $97,777. Investors feared that the successes of Chinese technologies could change the dynamics of investments in the blockchain and cryptocurrency sectors.
Expert opinions: Division of views
Analysts' reactions were mixed. Some expressed concern about a possible redistribution of investments in the field of artificial intelligence and a decrease in demand for products from American companies. Others believed that long-term prospects remain positive, noting that new developments could reduce costs and accelerate the adoption of technologies. However, it is still advisable to warn market participants. Most likely, we have witnessed the largest manipulation in financial markets. Several major media outlets are already conducting investigations into the involvement of the Chinese government in financing DeepSeek, as well as the miscalculation of the actual value of the working model. Today, the service was unable to cope with increased demand and was temporarily unavailable. There is also noted censorship on a number of political issues, a rather superficial or irrelevant level of AI responses, which in turn indicates outdated databases.
