Why is #DeepSeekImpact Crashing the Market?

#DeepSeek , an AI startup, has built a ChatGPT-like tool—but with a major twist. While OpenAI’s ChatGPT has raised over $17 billion at a $150 billion valuation, DeepSeek has achieved a similar feat with just $10 million in funding.

Over the past two years, the US and global stock markets have surged on AI hype, with companies raising over $100 billion to develop AI tools—many planning to raise even more.

But #DeepSeeks success is making investors question whether AI companies are overfunded and overvalued. This realization is hitting the market hard.

As a result, NVIDIA has plunged 20%, and since the crypto market often follows US stocks, Bitcoin and altcoins are crashing too.