The launch of a new Chinese AI model, DeepSeek, has caused a record 14% plunge in the stock price of tech giant NVIDIA. In just one day, the American company's market value dropped by $465 billion.
The DeepSeek R1 chatbot, unveiled last week, has reportedly outperformed the latest AI model from market leader OpenAI in several key areas. One of the key features of the DeepSeek AI model is its low development cost, around $5 million. Another notable distinction is its fully open-source code. The DeepSeek app has reached the top spot in its category on the App Store, surpassing OpenAI's Chat.
As a reminder, U.S. President Donald Trump recently announced a major AI development project called Stargate, with a budget of $500 billion. Companies such as SoftBank, OpenAI, Oracle, MGX, NVIDIA, Microsoft, and Arm are expected to be involved.