According to the Financial Times, Nvidia’s market value decreased by more than $600 million with a capitalization of $620 billion. The shares fell by 17.8%.
The source notes that the success of the DeepSeek neural network was a bolt from the blue among Western developers due to the “budget” nature of the Chinese company compared to the colossal expenses that American companies can afford. After the success of the new player in the AI technology market, rumors began to circulate that the industry would start reconsidering the feasibility of huge budgets and the possibility of implementing such projects with smaller teams.
One of the major investors, Marc Andreessen, stated that DeepSeek is one of “the most amazing and impressive achievements.” The Chinese neural network easily competed with OpenAI’s products.
