Tue Jan 28 01:46:37 UTC 2025: ## Nvidia’s Stock Plummets, Erasing $465 Billion in Market Value After DeepSeek’s AI Breakthrough

**NEW YORK/MUMBAI** – Nvidia Corporation experienced a record-breaking stock market crash on Monday, losing approximately $465 billion in market capitalization following the emergence of DeepSeek, a Chinese artificial intelligence startup. The dramatic 13% drop in Nvidia’s share price sent shockwaves through the broader market, pulling down the S&P 500 and Nasdaq 100 indices.

DeepSeek’s latest AI model, which rivals offerings from OpenAI and Meta, has raised concerns about the viability of current high-cost AI development strategies. The open-sourced model, developed by a quant-fund chief, boasts comparable performance at a fraction of the price, potentially disrupting the established AI business model that heavily relies on expensive chips and extensive computing power.

Nvidia, a major beneficiary of increased AI spending due to its semiconductor designs, has seen its stock heavily impacted. This event follows similar plunges in the past that have significantly affected the S&P 500. Investor concerns now center on the return on investment for massive AI expenditure, particularly in light of DeepSeek’s success.

The situation is further complicated by existing US export restrictions aimed at hindering China’s AI advancements. However, DeepSeek’s progress suggests these restrictions may be less effective than anticipated. Despite Meta’s recent announcement of a substantial increase in AI investment, the market reacted negatively to Nvidia’s decline, highlighting investor apprehension.

This news comes amidst other significant events, including India’s Traders Gurukul hosting the “BOTS” options trading summit and ongoing coverage of the global economy and markets on Moneycontrol.

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