Nvidia’s DeepSeek Shock: Market Value Drops by $500 Billion

Chinese company DeepSeek has developed a new artificial intelligence model that uses fewer chips and takes less time to create than its international competitors. This development has triggered significant selling pressure in global technology stocks, causing Nvidia, a U.S.-based chip manufacturer, to lose over $500 billion in market value.

According to a report in Dünya newspaper, DeepSeek’s AI model launched at a lower cost and with fewer chips than major rivals like Google and OpenAI. The rapid global adoption of this model has intensified selling pressure on technology stocks.

DeepSeek’s AI application has become the most downloaded AI app in app stores, surpassing the U.S.-based ChatGPT. China’s introduction of a low-cost AI model raises concerns about the dominance of Western companies, especially those in the U.S., and their large investments in the sector.

On Friday, Nvidia’s stock closed at $142.62. Today, it dropped to as low as $117.26, marking a nearly 18% loss in just one day. Nvidia experienced its highest daily loss since March 2020, with its market value decreasing by over $500 billion.

This decline marks the largest single-day drop in U.S. stock market history. With a market value now below $3 trillion, Nvidia has fallen from second to third place among the world’s largest companies.

These developments highlight the growing competition in artificial intelligence and the increasing impact of Chinese startups in the global technology market.