"DeepSeek's AI Model Upends Tech and Crypto Markets"

DeepSeek's Emergence Disrupts AI and Crypto Markets

DeepSeek, a Chinese AI startup, has caused a stir in the AI and cryptocurrency markets with its new AI model, which outperforms competitors like OpenAI and Meta at a fraction of the cost. This has led to a reassessment of AI investments and affected both crypto assets and tech stocks.

Key Takeaways:

• The AI agent market cap has plunged by $2.5 billion, with the figure dropping to $10 billion, reflecting a 19% decrease over the same period.
• DeepSeek's emergence has triggered a reassessment of AI investments, impacting major tech stocks and crypto assets.
• DeepSeek charges just 14 cents per million input tokens, significantly undercutting OpenAI’s GPT-4, which costs $15 per million input tokens.
• Major AI agents such as AIXBT, ai16z framework, Virtuals AI agent creation platform, and GRIFFAIN have all seen significant drops in value.
• The broader AI crypto token market has also shown weakness, with Near Protocol down 10%, Internet Computer falling 7%, Render declining 14%, and Artificial Superintelligence Alliance dropping 10%.
• The Nasdaq fell 3.6% on Monday, and Nvidia stock dropped nearly 20% to $118 by mid-morning.
• Last week, President Trump announced a new joint AI research initiative that would reach up to $500 billion in funding over the next four years, involving massive investments in data centers and power plants to brute-force the question of AI research.
• DeepSeek has already overtaken ChatGPT as the top app on Apple’s App Store and surpassed OpenAI in US Google search interest over the past week.

DeepSeek's Impact on Nvidia and Mining Stocks

DeepSeek's launch has sent shockwaves through the cryptocurrency and AI industries, with its unexpected success with minimal resources challenging the capital-intensive strategies of top US firms. This has raised questions about future investment dynamics and the necessity of hardware investment in AI development.

Key Takeaways: