New Delhi: With Wall Street’s superstars like Nvidia plunging nearly 17 per cent as a tech-led selloff tied to Chinese AI developer DeepSeek sent major indices dropping, the world’s 500 richest people – Nvidia Corp. co-founder Jensen Huang, suffered a combined loss of $108 billion on Monday, Bloomberg reported.
The DeepSeek has severely hit the tech companies which have been reaping big profits due to the booming Artificial Intelligence industry. The S&P 500 went down 1.5 per cent on Monday, while Nasdaq composite plummeted 3.1 per cent.
Not only the chip companies, but the utilities which were a support base for the AI industry also suffered a setback as the stocks of companies engaged in the business of AI data centres also tumbled. Despite the downfall, the stocks which were not related to AI industries performed good and helped the Dow Jones Industrial Average rise 0.7 per cent.
The sell off was triggered after a Chinese company called DeepSeek announced to develop a large language model that can give a direct competition to firms like Nvidia and perhaps at a fraction of the cost.
- Huang’s wealth eroded 20 per cent, i.e. $20.1 billion,
- Oracle Corp. co-founder Larry Ellison’s wealth dropped $22.6 billion.
- Dell Inc.’s Michael Dell lost $13 billion
- Binance Holdings Ltd. co-founder Changpeng “CZ” Zhao recorded a loss of $12.1 billion
- The above-mentioned data was according to the Bloomberg Billionaires Index.
Deep Seek News
Reuters reported that DeepSeek’s AI assistant became the No. 1 downloaded free app on Apple’s iPhone store on Monday. The US tech industry is worried as the Chinese startup comes forward as a biggest competitor as it is generating AI at a fraction of the cost.
DeepSeek became hit topic of discussion in AI industry in December 2024 after it released a new AI model that which it claimed was on par with ChatGPT maker OpenAI, and also cost-effective in its use of expensive Nvidia chips to train the system on huge troves of data.
DeepSeek’s release of a cost-effective large language model triggered a massive tech selloff, wiping out $108 billion from the world’s 500 richest individuals. Nvidia, a major player in AI, posted a sharp 17% drop, impacting its co-founder Jensen Huang significantly. Other tech giants like Oracle and Dell also suffered substantial losses. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
