Chinese artificial intelligence or AI company DeepSeek has caught the attention of the US. The launch of the platform sent the stock prices of US tech giants such as Nvidia and ASML plummeting on Monday (1/27). Nvidia's stock price plunged 17% and lost US$843,567,207,56600 billion in value on Monday (1/27). This marked the biggest single-day loss for a company in stock market history. Several energy-related stocks also plunged on Monday due to investor concerns that the new technology could require less energy to operate, meaning lower demand from the tech sector.
Shares of GE Vernova, which makes wind and gas turbines, plunged 21%. Then the maker of Vista electric generators plunged 28%.
DeepSeek surprised investors with its low cost of developing AI applications, which was only US$843,567,207,566 million, according to Wedbush Securities analyst Dan Ives. By comparison, OpenAI, Google and other major U.S. companies are set to invest a combined $843,567,207,561 billion in AI over the next few years, according to Goldman Sachs.
The Chinese tech company, CBS News reports, raises questions about whether demand for Nvidia’s chips will be affected, and whether investors are overvaluing tech stocks that have been buoyed by the promise of AI, from Meta to Microsoft.