Nvidia sees historic $600 billion loss as China’s DeepSeek draws attention

Jan 27

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Lauren Taylor Anchor

By Lauren Taylor (Anchor), Kalé Carey (Reporter), Zachary Hill (Video Editor)

Nvidia, heralded as the most valuable publicly traded company just last week, faced a dramatic turn of events Monday, Jan. 27. The tech giant saw its value drop by $600 billion, marking the largest single-day fall in U.S. stock market history.

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The loss was triggered by the emergence of a new competitor in the artificial intelligence industry: China-based DeepSeek.

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DeepSeek challenges Nvidia’s market dominance

DeepSeek, a rising AI company, has positioned itself as a serious rival to Nvidia. The company’s chatbot is now available in the Apple and Google app stores. Investors quickly responded to the news, with many selling off their Nvidia stock, signaling concern about the new competition.

According to industry reports, DeepSeek’s AI model is cheaper than Nvidia’s and formidable against established models like ChatGPT. The company claims it developed its AI for under $6 million, compared to the more than $30 billion Nvidia has spent over one decade to develop its specialized chips for AI data processing.

Nvidia, which powers its AI data with high-end chips designed specifically for AI development, now faces competition from a more affordable alternative. Companies like Meta and Amazon rely on Nvidia’s graphics processing units, also known as GPUs, to train their AI models. Still, the increasing affordability of DeepSeek’s technology could potentially disrupt the market.

The White House’s AI and crypto czar recently emphasized that the swift market shift underscores the intense global race for AI innovation and dominance.

Broader AI and tech sectors also took a hit on the stock market Monday, with other companies like Oracle seeing a drop.

Tags: Artificial Intelligence, China, Donald Trump, NVIDIA, Stock Market

[Lauren Taylor]

NVIDIA RECENTLY BECAME THE MOST VALUABLE PUBLICLY TRADED COMPANY JUST LAST WEEK, BUT ON MONDAY, IT MADE HISTORY FOR A DIFFERENT REASON, LOSING 600 BILLION DOLLARS IN VALUE.

THE LOSS MARKS THE BIGGEST SINGLE-DAY DROP IN U.S. HISTORY, TRIGGERED BY A NEW RIVAL ENTERING THE AI INDUSTRY.

THE WHITE HOUSE’S AI AND CRYPTO CZAR SAYS THIS SWIFT SHIFT SHOWS JUST HOW INTENSE THE GLOBAL RACE FOR AI DOMINANCE HAS BECOME.

INVESTORS QUICKLY SOLD OFF THEIR STOCK AS DEEPSEEK, A CHINESE-BASED AI COMPANY, SAW ITS CHATBOT GAINING TRACTION.

THE AI MODEL, WHICH HIT APPLE AND GOOGLE APP STORES EARLY IN 2025, IS NOW STARTING TO CHALLENGE NVIDIA’S MARKET DOMINANCE.

DEEPSEEK SAYS THEIR MODEL IS NOT ONLY CHEAPER BUT ALSO COMPETES WITH CHATGPT AND OTHER U.S.-BASED AI MODELS.

NVIDIA POWERS ITS AI DATA WITH CHIP DESIGNED FOR A-I DEVELOPMENT, WHILE DEEPSEEK CLAIMS TO HAVE USED LESS ADVANCED TECHNOLOGY TO DEVELOP ITS AI FOR UNDER SIX MILLION DOLLARS.

COMPANIES SUCH AS META AND AMAZON USE NVIDIA’S GRAPHICS PROCESSING UNITS TO TRAIN THEIR OWN ARTIFICIAL INTELLIGENCE MODELS.

THE A-I AND TECH SECTOR AS A WHOLE TOOK A HIT IN THE STOCK MARKET, NVIDIA DROPPED BY 17 PERCENT WHILE ORACLE FELL BY 14.

FOR STRAIGHT ARROW NEWS, I’M LAUREN TAYLOR