Tue Jan 28 17:12:34 UTC 2025: ## DeepSeek’s Rise Shakes US Tech Stocks, Nvidia Takes Biggest-Ever Single-Day Loss

**New York/London** – The emergence of DeepSeek, a low-cost Chinese AI chatbot, sent shockwaves through US and Asian tech markets on Monday and Tuesday. The app, which rapidly became the most downloaded free app in the US, caused Nvidia, a leading AI chipmaker, to suffer the largest single-day loss in US market history, shedding over 16% of its value—a drop of more than $500 billion.

DeepSeek’s remarkably low development cost—a reported $5.6 million compared to billions spent by competitors like OpenAI—raised concerns about the future of American AI dominance. While Nvidia’s stock saw a slight rebound at the market open on Tuesday, uncertainty remains. Other tech stocks, initially plummeting, showed signs of stabilization. Asian markets, however, reflected the continuing unease, with declines in Japanese AI-related firms.

President Trump described DeepSeek’s success as a “wake-up call” for the US tech industry, suggesting that the lower cost could ultimately benefit the US. However, concerns regarding data privacy and potential links to the Chinese government were raised by Australian Science Minister Ed Husic.

Despite the significant losses, some analysts point out that Nvidia’s stock remains considerably higher than it was just last October. The long-term impact of DeepSeek’s arrival on the AI landscape and the US tech sector remains to be seen, but its immediate impact has undeniably been substantial. The sudden success of DeepSeek has been described by some as a “Sputnik moment” for the AI industry. While the markets have shown some signs of recovery, the overall effect on investor confidence remains uncertain. The Lunar New Year holiday in China has added another layer of complexity, as DeepSeek’s team is currently observing the holiday and unavailable for comment.

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