Nvidia Loses Over $500bn In Market Value Amid DeepSeek’s Rise

Nvidia Loses Over $500bn In Market Value Amid DeepSeek’s Rise
Nvidia Loses Over $500bn In Market Value Amid DeepSeek’s Rise
Nvidia, a leader in accelerated computing, suffered a significant loss of approximately $589 billion in market value on Monday.

Gatekeepers News reports that this decline was triggered by a 17 percent drop in Nvidia’s stock during midday trading on Wall Street, according to Bloomberg. The repercussions of this steep decline were felt across global markets due to Nvidia’s substantial impact on major stock indices.

In the United States, the S&P 500 fell by 2.3 percent, while the Nasdaq 100 experienced a 3.6 percent drop. European markets similarly faced challenges, with the Frankfurt and Paris stock exchanges closing lower, while London’s market remained flat. Asian stock markets also recorded losses in response to Nvidia’s situation.

Several technology giants, including Microsoft and Alphabet (the parent company of Google), saw declines in their stock prices as well, although Meta succeeded in maintaining a positive performance. Notably, Meta has set up a war room to closely monitor the situation with DeepSeek, a Chinese chatbot platform that has recently gained significant attention.

Nvidia has benefited significantly from increased spending on artificial intelligence (AI), as its semiconductors are crucial for the efficient operation of AI technologies. However, the recent emergence of DeepSeek has introduced new competition in the AI industry. DeepSeek’s rise has caught the attention of President Donald Trump, who commented that DeepSeek “should be a wake-up call” for American tech companies, acknowledging the challenge posed by the Chinese AI app.

DeepSeek recently surpassed ChatGPT to become the top-rated free app on Apple’s US app store. Despite US restrictions on the export of advanced GPU chips to China, researchers at DeepSeek claim to have trained their latest model using Nvidia’s chips, with training costs amounting to approximately $6 million—far less than the typical expense involved in developing high-end AI systems.

DeepSeek’s rise in the AI sector comes at a time when the US is intensifying its efforts to maintain a competitive edge, exemplified by the announcement of the Stargate Project. Launched by President Donald Trump, this initiative represents a collaboration between Oracle, Japan’s SoftBank, and OpenAI, the organisation behind ChatGPT. OpenAI has stated that the Stargate Project aims to bolster US capabilities in AI, create thousands of jobs, and enhance national security.