US tech giant Nvidia lost over a sixth of its value after the surging popularity of a Chinese artificial intelligence (AI) app spooked investors in the US and Europe.
DeepSeek, a Chinese AI chatbot reportedly made at a fraction of the cost of its rivals, launched last week but has already become the most downloaded free app in the US.
AI chip giant Nvidia and other tech firms connected to AI, including Microsoft and Google, saw their values tumble on Monday in the wake of DeepSeek’s sudden rise. […]
The DeepSeek chatbot was reportedly developed for a fraction of the cost of its rivals, raising questions about the future of America’s AI dominance and the scale of investments US firms are planning. Last week, OpenAI joined a group of other firms who pledged to invest $500bn (£400bn) in building AI infrastructure in the US.
President Donald Trump, in one of his first announcements since returning to office, called it ”the largest AI infrastructure project by far in history” that would help keep ”the future of technology” in the US.
DeepSeek is powered by the open source DeepSeek-V3 model, which its researchers claim was trained for around $6m – significantly less than the billions spent by rivals. But this claim has been disputed by others in AI. Läs artikel