#DeepSeekImpact

The market crash is attributed to China’s DeepSeek outperforming ChatGPT – what’s the real story?

❗️ The talk is currently centered around the DeepSeek app, which was developed in less than two months at a cost of no more than $10 million.

Despite its low costs and small team of no more than 200 people, it managed to top the list of apps in the App Store.

This stands in stark contrast to the US’s $500 billion investment in artificial intelligence.

❓ What does this have to do with the market crash?

Investors are beginning to question the high valuations of major US tech companies, especially those leading the AI ​​industry.

If a low-cost app like DeepSeek can compete with or outperform products like ChatGPT that require huge investments, it raises concerns about the true value of these companies.

This doubt has led to a massive sell-off, leading to a decline in stock prices, particularly the Nasdaq.

The crypto market has also followed suit, compounding the decline.

⚠️ There are those who believe that this collapse was exaggerated by financial institutions manipulating the market with the aim of re-arranging their investment positions, which contributed to increasing chaos.