The unveiling of the new artificial intelligence assistant from the Chinese start-up DeepSeek caused a real shock in global financial markets, resulting in significant losses for tech giants and investors. DeepSeek’s chatbot, launched on 10 January 2025, stood out for its efficiency and low development cost, directly challenging the leadership of companies such as Nvidia and OpenAI in the AI sector.
Impact on the market
Nvidia shares led the losses, falling almost 17% in a single day and wiping approximately 589 billion dollars off its market value, the biggest loss in value recorded in the history of the American stock market. The Nasdaq index, highly dependent on tech companies, fell 3.1%, while the S&P 500 dropped 1.5%. Companies such as Broadcom, Microsoft and Alphabet also suffered sharp falls, of 17.4%, 2.1% and 4.2% respectively.
DeepSeek’s technology
DeepSeek’s chatbot is distinguished by its large-scale language model, developed with only 5.6 million dollars — a fraction of the hundreds of millions invested by Western competitors. This feat was made possible by a combination of technological advances and operational efficiency, along with an open-source approach that facilitates global collaboration.
Global repercussions
The unexpected launch and success of DeepSeek’s product have raised concerns about the viability of current AI-based business models, and have called into question the need for massive investment in infrastructure. Analysts point to a "Sputnik moment", in which Chinese technological progress forces Western companies to reassess their strategies and investments in the sector.
Market response
Investors are cautious about the long-term consequences of this development. Although some experts consider it unlikely that DeepSeek will destroy the dominance of giants such as Nvidia and Broadcom, the start-up has already changed the narrative around the efficiency and accessibility of artificial intelligence.
The evolution of the technological and financial landscape will continue to be monitored, with many questions still to be answered about how established companies will adapt to this new paradigm imposed by DeepSeek.
