DeepSeek AI Model Spurs NVIDIA Stock Drop, Global Tech Sell-Off

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DeepSeek, a Chinese artificial intelligence company, is sending shockwaves through the tech industry with the release of its latest model. Smaller, faster, and open-source, the DeepSeek-V3 model is a direct challenge to NVIDIA’s dominance in AI hardware.

DeepSeek claims its model rivals leading proprietary systems, offering comparable performance while being significantly more cost-efficient. The company’s impact isn’t just theoretical—its AI assistant app has become the most downloaded free application on Apple’s App Store in the United States, overtaking OpenAI’s ChatGPT. On open-source platforms like GitHub, DeepSeek’s repositories are attracting thousands of stars and forks, signaling significant interest from developers worldwide.

The immediate fallout hit the stock market hard. NVIDIA’s shares plunged 10% in pre-market trading, while other tech stocks faced similar declines. Analysts warn of a potential industry shakeup, with one noting, “If DeepSeek’s open-source model gains traction, it could dramatically reduce the need for expensive, high-performance GPUs.”

For businesses, developers, and investors, the rise of DeepSeek highlights a shift in the AI landscape toward affordability and accessibility. As the company builds momentum, the broader industry will need to adapt quickly to compete with this disruptive new player.

 

 

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