"DeepSeek's Rise: NVIDIA, OpenAI Face Chinese AI Threat"

Chinese DeepSeek AI Soars – NVIDIA, OpenAI under threat?

The emergence of DeepSeek, a Chinese AI model, has sent shockwaves through the tech and crypto markets. With a fraction of the cost and higher benchmarks than models from OpenAI, Google, and Meta, DeepSeek has prompted a reassessment of AI investments, affecting both crypto assets and tech stocks.

Key Takeaways:

• The AI agent market cap has plunged over $2.5 billion, with CoinGecko data showing a 19% decrease.
• AI meme coin Fartcoin saw the sharpest drop, tumbling 31%, while major AI agents like AIXBT and ai16z framework fell 18.5% and 24%, respectively.
• The broader AI crypto token market showed similar weakness, with Near Protocol down 10% and Internet Computer falling 7%.
• The Nasdaq fell 3.6% on Monday, and NVIDIA stock dropped nearly 20% to $118 by mid-morning.
• Last week, Donald Trump announced a $500 billion investment in Project Stargate to support OpenAI and solidify American AI dominance.
• 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 disruptive success highlights the potential for more cost-effective AI development, challenging the resource-intensive strategies of major tech firms. As investors reassess their AI investment strategies, the future of AI development may be reshaped by this Chinese newcomer.

Sources:

• DeepSeek fears wipe $2.5B from AI agent market
• DeepSeek Suddenly Dumped Bitcoin
• DeepSeek’s Rise Challenges NVIDIA and Mining Stocks, Prompting Rethinks in AI Investment Strategies
• China Spends $137.5 Billion for The AI Race