Wed Jan 29 07:47:15 UTC 2025: ## Chinese AI Startup DeepSeek Shakes Up Global Markets, Triggers Billions in Losses on Wall Street
**New York, NY** – A newly launched Chinese AI model, DeepSeek R1, sent shockwaves through the US stock market on Monday, causing a significant downturn and billions of dollars in losses for major tech companies. The Nasdaq index, heavily weighted with tech stocks, plummeted over 3%. NVIDIA, the world’s leading AI chipmaker, alone saw its valuation drop by a staggering $60 billion. Other tech giants like Microsoft and Dell also experienced substantial market cap decreases. The losses extended to the world’s 500 wealthiest individuals, whose net worth collectively took a massive hit.
The culprit? DeepSeek R1, a free-to-use AI model developed by a 20-month-old Chinese startup of the same name, founded by 39-year-old Liang Wenfeng. DeepSeek is being touted as a potent rival to established players like ChatGPT and Google Gemini, offering comparable services entirely free of charge. This stark contrast to the paid models offered by US tech firms is driving its explosive popularity.
Liang, who previously predicted OpenAI’s dominance wouldn’t last, leveraged readily available, less powerful H800 GPUs to train DeepSeek after US export controls limited access to advanced chips like the Nvidia H100. His resourceful approach, utilizing approximately 50,000 H800 GPUs, has proven remarkably effective.
While Liang’s exact net worth remains undisclosed, Chemical City Paper estimates it to be around $3.2 billion. His journey from a humble background with a primary school teacher father to becoming a disruptive force in the AI world highlights the rapid pace of innovation and the potential for unforeseen market disruptions. The impact of DeepSeek R1 and its implications for the global AI landscape remain to be seen.
First Piper 