Chinese company DeepSeek's AI miracle shakes US stock market, Nvidia loses $600 billion

A war has broken out in the world to control AI, in which explosions are happening every day. The latest explosion has been done by China. China's AI startup DeepSeek-R1 has come up with a cheap AI model that has created a stir in the US stock market. On Monday, the shares of US chip maker Nvidia Corp were hit. In the fear of China's cheap AI model like Chatgpt, its $600 billion was lost in a few minutes. This is the biggest drop in the market value of the world's largest tech company Nvidia Corp. The extent to which America is terrified of this new AI model of China can be understood from the fact that President Donald Trump has warned American tech companies and called it a wake-up call.

America's largest tech company Nvidia Corp is still at the forefront in the field of AI. But China's AI startup DeepSeek has created a stir all over the world. As soon as the US stock market opened on Monday, the shares of Nvidia Corp fell so much that people were shocked. This is the biggest historical drop in the market value of the world's largest tech company Nvidia Corp, which has caused panic among tech companies around the world.

What is DeepSeek?

DeepSeek is an advanced AI model of China. It has been developed by a research lab named DeepSeek in Hangzhou, known as the Silicon Valley of China. It was founded in 2023 by Liang Wenfeng, a Chinese AI engineer with experience in quantitative finance. China's DeepSeek has been continuously dropping many bombs in the world of AI. The latest blast has been done through a cheap AI model like Chat GPT.

China's DeepSeek has introduced a free AI to the people. The company claims that it uses cheaper chips and less data. DeepSeek also challenges the fact that the development of AI will mainly increase the demand for components like chips and data centers. What is surprising is that the DeepSeek-V3 model has been built for just $5.6 million. This is nothing compared to the expenditure made by OpenAi, Google, Meta on their AI models. In such a situation, Chinese products are also seen to be a hit in the field of AI. Nvidia's loss of $600 billion is many times more than the market cap of many well-known companies.

According to the report, Nvidia Corp's shares have fallen by about 13 percent in the US market. It is being told that due to this decline, the company's market value has decreased by $465 billion. The main reason for the fall in Nvidia's shares is said to be DeepSeek's introduction of better AI models at a lower price. This has happened after the US banned the export of advanced semiconductor technology to China. The US has restricted the sale of advanced Nvidia AI chips to many countries, even its allies. In such a situation, a huge shortage of chips is being seen all over the world.

Deepseek's AI assistant has overtaken ChatGPT on America's Apple App Star and reached number one. After the arrival of Deepseek, it is now a challenge for big tech companies like Nvidia to compete with new and cheap artificial intelligence (AI) models. Work is being done on AI-powered data centers in India.