Nvidia faced its worst trading day since March 2020, with shares dropping nearly 17% following the release of DeepSeek's cost-effective AI model, sparking a significant market sell-off and raising questions about the future of AI infrastructure spending.
Nvidia's shares fell sharply in premarket trading after Chinese startup DeepSeek launched a competitive AI model, raising concerns over US tech firms' competitiveness and causing a broader tech stock sell-off.
Chinese AI startup DeepSeek has quickly risen to the top of Apple’s App Store in the US, UK, and China, surpassing ChatGPT and other competitors. Its success challenges the US dominance in the AI industry and raises concerns among global tech giants.