<img src="https://static.gujaratsamachar.com/content_image/content_image_4705729a-68d8-4cce-8f66-3b9c6484d4b8.jpeg" data-filename="Chief Justice Sunita Agarwal (12).png" style="width: 100%;" alt="Chinese AI startup DeepSeek erases $600 bn of Nvidia on US stock market"> DeepSeek, a Chinese artificial intelligence (AI) model triggered a steep selloff in US semiconductor companies, bringing the markets slumping.&nbsp;DeepSeek’s free AI assistant was launched last week, and it claims to use less data and is said to be 95% cheaper than OpenAI rivals like ChatGPT and Gemini, as per reports.The reports also suggested that it had surpassed ChatGPT in App Store downloads.As a result, on January 27, the Nasdaq went down by 3.1% thanks to Nvidia’s 17% slump, noted the reports. Not only Nvidia, but chip maker Broadcom also went down by 17.4%, Microsoft that backs ChatGPT went down by 2.1%, and Alphabet – the parent company of Gemini’s Google – went down by 4.2%.Nvidia’s 17% drop cost investors a whopping $593 billion washout, stated the reports.<h2 style="text-align: left;">Why Nvidia?</h2>Nvidia’s GPUs lead the US market for data centre chips, with major tech companies investing billions in these processors to train their AI models.DeepSeek claims to use Nvidia’s own lower-capability chips, and thus, is very cost-effective. Moreover, the AI model is open source, unlike OpenAI’s ChatGPT and other rivals.As per reports, the Hangzhou-based startup claims to be 20-50 times cheaper than its rivals depending on the task.This, combined with the high costs of AI endeavours in the US that use Nvidia’s high-end chips compared to this low-cost, open-source Chinese alternative, meant bad news for the chip giant as investors started selling their tech stocks on January 27.<h2 style="text-align: left;">India and world markets</h2>The domestic benchmark indices opened higher on Tuesday after ending over a seven-month low in the previous trading session.&nbsp;As of 9.33 am, the Sensex was 303 points or 0.41% higher at 75,694, while the Nifty 50 went up 70 points or 0.30% at 22,898.HDFC Bank, ICICI Bank, Infosys, Axis Bank and State Bank of India gained on the NSE Nifty 50 index in early trade. Nifty Bank was up over 1%.On Monday, the Indian markets witnessed sharp selling throughout the trading session, following a gap-down opening.The foreign institutional investors (FIIs) sold equities worth ₹5,015 crore on January 27 and on the other hand, domestic institutional investors bought equities worth ₹6,642 crore on the same day.In Asia, Japanese shares led losses in equities following a bruising session on Wall Street as a Chinese artificial intelligence (AI) model by DeepSeek startup triggered a steep selloff in US semiconductor companies.(with inputs from syndicated feed)

DeepSeek, a Chinese artificial intelligence (AI) model triggered a steep selloff in US semiconductor companies, bringing the markets slumping.

Chinese AI startup DeepSeek erases $600 bn of Nvidia on US stock market

DeepSeek

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Chinese-AI-startup

Chinese AI startup DeepSeek erases $600 bn of Nvidia on US stock market

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