Market Crash Blamed on Chinese DeepSeek AI Surpassing ChatGPT—What’s Really Happening?
❗️ The tech world is buzzing over DeepSeek, an AI app developed in just two months with a budget of less than $10 million. Despite its modest resources and a team of fewer than 200 people, DeepSeek has skyrocketed to the #1 spot on the App Store. This stands in stark contrast to the $500 billion the U.S. has poured into AI development.
❓ So, why is DeepSeek being linked to the market meltdown? Investors are questioning the high valuations of major U.S. tech companies, particularly those leading in AI. If a low-cost app like DeepSeek can rival or outperform expensive products like ChatGPT, it raises doubts about the true worth of these tech giants. This loss of confidence triggered a massive sell-off, leading to plummeting stock prices and a sharp drop in the Nasdaq index. The crypto market, which is closely tied to tech stocks, followed suit, exacerbating the downturn.
⚠️ Some analysts believe institutional players may have taken advantage of the panic, manipulating the market to re-enter positions at lower prices and fueling further chaos.
🚩 While the hype around DeepSeek is undeniable, having worked with it, I can confidently say it doesn’t come close to matching ChatGPT. Still, perception often outweighs reality in moments like this.