Crypto Skull Signal
--
‼️ Market crash blamed on Chinese DeepSeek AI surpassing ChatGPT—what’s the real story?
❗️ The buzz is about DeepSeek, an app built in under 2 months for less than $10 million. Despite its minimal cost and small team of under 200 people, it’s now ranked #1 on the App Store. This is in stark contrast to America’s $500 billion investment in AI.
❓ Why is this linked to the market collapse? Investors are doubting the sky-high valuations of major U.S. tech companies, especially those leading in AI. If a low-cost app like DeepSeek can rival or outperform expensive products like ChatGPT, it undermines confidence in these companies' worth. This skepticism triggered a sell-off, causing stock prices—and the Nasdaq index—to tumble. The highly correlated crypto market followed suit, amplifying the collapse.
⚠️ Some argue this was also fueled by institutional players manipulating the market to refill their positions, adding to the chaos.
🚩 Honestly, I’ve worked with DeepSeek, and it doesn’t hold a candle to ChatGPT, but the hype is real.
❗️ The buzz is about DeepSeek, an app built in under 2 months for less than $10 million. Despite its minimal cost and small team of under 200 people, it’s now ranked #1 on the App Store. This is in stark contrast to America’s $500 billion investment in AI.
❓ Why is this linked to the market collapse? Investors are doubting the sky-high valuations of major U.S. tech companies, especially those leading in AI. If a low-cost app like DeepSeek can rival or outperform expensive products like ChatGPT, it undermines confidence in these companies' worth. This skepticism triggered a sell-off, causing stock prices—and the Nasdaq index—to tumble. The highly correlated crypto market followed suit, amplifying the collapse.
⚠️ Some argue this was also fueled by institutional players manipulating the market to refill their positions, adding to the chaos.
🚩 Honestly, I’ve worked with DeepSeek, and it doesn’t hold a candle to ChatGPT, but the hype is real.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.