Technology

Nvidia’s shares tumble after DeepSeek AI launched

The value of American tech company Nvidia fell by about $ 600 billion (Rs 51.31 lakh crore) on Monday due to the entry of China’s artificial intelligence (AI) model DeepSeek. This is the biggest fall in a single day in any company in the history of America.

After the 17% fall in the shares, the value of Nvidia has come down to $ 2.90 trillion (about Rs 251 lakh crore). Earlier it was more than Rs 302 lakh crore.

Warning about the Chinese startup DeepSeek, US President Donald Trump said – this is a wake up call for the US technology industry, that is, it is time to be alert.

The effect of the fall in Nvidia’s stock was also seen on the American stock index Nasdaq. On Monday, it fell by 3.07% and the Nasdaq fell 612.47 points to 19,341.83.

The tech sector of the second American index S&P 500 registered a decline of 5.6%. This is the biggest drop in the index since September 2020.

Nvidia CEO’s wealth reduced by ₹ 1.79 lakh crore in one day. Due to the fall in Nvidia’s shares, the company’s CEO Jensen Huang suffered a loss of US $ 20.8 billion (Rs 1.79 lakh crore).

According to Forbes, Huang’s wealth decreased from US $ 124.4 billion (Rs 10.76 lakh crore) to US $ 103.7 billion (Rs 8.97 lakh crore). He moved from 10th place to 17th place in the real-time list of billionaires.

Chinese AI model is much cheaper than American companies

DeepSeek is a completely free and open source AI model. Apart from this, China’s model has been prepared at a very low cost, whereas companies like Nvidia, Microsoft and Meta of America have developed AI models by making huge investments. Some reports claim that the DeepSeek company developed its AI model for just Rs 48.45 crore.

DeepSeek overtook ChatGPT on the App Store. China’s DeepSeek app can be downloaded from the company’s website and Apple’s App Store. AI is giving very accurate results in complex tasks like coding and maths. It is in the first position in terms of downloading from the Apple App Store in the US and the UK. It has overtaken Open AI’s ChatGPT in both places.

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