Nvidia loses 589 billion dollars market value on one day through messages about Chinese Deepseek

On Monday, unrest arose in the financial markets after it turned out that the Chinese Deepseek has succeeded in developing a successful AI model in a much cheaper way than his American competitors and without using the advanced AI chips from Nvidia. In the meantime, the Deepseek app has also been downloaded more in the US than Chatgpt’s. This raises the American dominance around AI.

Nvidia is the largest listed company in the world and the share lost 17 percent on Monday evening. That is the biggest price drop since March 2020 for the company. Market value is a record of $ 589 billion. That amount corresponds to almost the gross domestic product (GDP) of Belgium. The previous record loss for Nvidia dates from September last year, when 279 billion dollars in stock market value went up in smoke in one day.

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Due to the great weight of Nvidia on Wall Street, his loss also sent the S&P 500 index lower. According to Bloomberg, in Market value, one of the ten worst trading days ever in the US was on Monday. The S&P 500 index ended 1.5 percent in red, the Nasdaq index even 3 percent.

NVIDIA said in a press release on Monday that the Deepseek model means “an excellent AI pruitment” and said that the Chinese company did not violate the strict export rules for advanced computer chips.