Chinese Ki Deepseek lets US shares sink

Chinese Ki Deepseek lets US shares sink

The US exchanges experienced a dramatic decline on Monday, with the chip manufacturer Nvidia lost almost $ 600 billion in market capitalization. This was done after the surprising presentation of a new AI Model by the Chinese company Deepseek , which shook the security feeling for the American technology industry.

Deepseek revolutionizes the AI market

The only one year-old start-up deepseek recently presented the AI model R1, which is similar to chatt, but operates to a fraction of the costs that apply companies such as Openaai, Google or Meta for their popular AI models. Deepseek stated that he only spent $ 5.6 million for the computing power of its basic model, while US companies invest hundreds of million or even billions for their technologies.

market analysis after the announcement

The news ensured turmoil on the markets on Monday, especially in the technology sector. The tech-heavy NASDAQ index fell by 3.1 %, while the wider S&P 500 followed by 1.5 %. The Dow-Jones index, which was supported by health and consumer companies that could be affected by AI, increased by 289 points or about 0.7 %. At the beginning of the trading day, the losses were even more serious.

The reaction of the tech world

Meta announced last week to invest over $ 65 billion in the development of AI this year. Sam Altman, CEO of Openaai, had previously explained that the AI industry would need trillions of dollars of investments to develop the sought-after chips that are required for the operation of energy-hungry data centers.

episodes for Nvidia and the technology sector

nvidia, the leading provider of AI chips, experienced a drastic decline and fell by almost 17 %, which lost the company $ 588.8 billion in market capitalization-more than ever on a single trading day. For comparison: Nvidia lost more in market value on Monday than only 13 companies are worth overall. Previously, Nvidia was the most valuable company traded on the stock exchange with over 3.4 trillion dollars.

A decline for energy and technology companies

The news also had an impact on non-technological companies on Wall Street. Energy companies that had increased significantly in recent years have been drastically fell. Constellation Energy's shares fell by 21 %, while competitors like Vistra collapsed by 28 %. The prices for natural gas and oil also dropped.

is that really a permanent trend?

Although the success of Deepseek is impressive, a single remarkable result could not be enough to exceed the years of progress in American companies in the field of AI. A massive change of customer to a Chinese start-up is also unlikely. The upheavals on the market could therefore only have been exaggerated or investors are only looking for sale.

the look into the future

The technology industry, however, remains skeptical about the low costs of Deepseek. Despite this short -term uncertainty, the United States remains a promising location for the development of self -improving AI thanks to its extensive talents and capital reserves. The response to Deepseek's announcement could be crucial for how the market reacts to future developments in the near future.