How the buzz around Chinese AI model DeepSeek sparked a massive Nasdaq sell-off
Publishing timestamp: 2025-01-27 16:07:32
Summary
Chinese AI startup DeepSeek sparked a sell-off in U.S. technology stocks as its competitive and cost-effective models raised doubts about the billions big U.S. tech companies are spending on AI. DeepSeek's emergence is shaking up investor confidence in the AI story that has been driving the U.S. bull market. The company's R1 reasoning model outperformed Open AI's latest model, leading to a significant drop in Nvidia's shares and a 3% decline in the tech-heavy Nasdaq Composite.
Sentiment: MIXED
Keywords: investment strategy, apple inc, chamath palihapitiya, nvidia corp, markets, united states, china, artificial intelligence, stock markets, business news, technology, breaking news: business, generative ai, breaking news: markets, wall street, breaking news: investing, nasdaq composite,