Both OpenAI and Nvidia Corp on Monday offered their verdicts on DeepSeek's artificial intelligence announcement, appearing to welcome the cheaper and less data-hungry bot. Sam Altman, chief executive of ChatGPT maker OpenAI, vowed improvement and greeted the rival in response.
The Nasdaq Composite has led the market higher over the past couple of years, and while improving economic conditions have likely been the biggest catalyst, developments in the field of artificial intelligence (AI) run a close second. AI has been around for decades, but recent advancements have the potential to be a game-changer by streamlining mundane tasks and increasing productivity.
Nvidia Corp shares were on course to partially bounce back ahead of Tuesday's trading as the week's early global tech sell-off appeared to peter out. Having been victim of heavy selling over jitters sparked by the release of DeepSeek's artificial intelligence bot last week, shares regained 5% to reach US$124.54 in pre-market trading.
the chip maker saw its market value drop by $593 billion, the biggest one-day drop for any listed company on record.
Retail investors bought a record amount of Nvidia stock on Monday after concerns over a low-cost artificial intelligence model from Chinese startup DeepSeek stripped 17% off its shares, or $593 billion from its market value.
Black Swan author Nassim Taleb says the steep plunge in Nvidia exposes the equity market's fragility, while warning of more losses ahead. Speaking to Bloomberg's Sonali Basak on the sidelines of Miami Hedge Fund Week, Taleb says a drawdown two or three times bigger than Monday's 17% selloff is "absolutely in line" with what the market should expect.
Nvidia (NVDA -16.97%) roared higher last year, gaining more than 170%, and emerged as the key player in the artificial intelligence (AI) boom. This is because the tech giant sells the world's top performing AI chips as well as a wide range of related products and services to accompany customers throughout their AI stories.
Single-stock ETFs betting heavily on Nvidia's blistering rally plunged overnight, tracking losses logged by the chip darling. Leveraged single-stock ETFs supercharge the companies they track, delivering amplified returns in either direction.
America's artificial intelligence industry has been dealt a “wake-up call” in DeepSeek's cheaper and more efficient bot, Donald Trump has said. Following a global tech sector sell-off on Monday, the president reassured the US would remain dominant in the AI space and that DeepSeek's development could be a positive.
Nvidia's market cap takes a $600bn battering – the biggest one-day Wall Street wipe-out in history. The emergence of DeepSeek sees $1tn knocked off big tech stocks amid a market panic reverberating in Japan and in European AI-related shares.
Chinese startup DeepSeek triggered panic among investors in top AI companies like Nvidia. DeepSeek claims to have built AI that rivals OpenAI's o1 but with less compute.
Nvidia (NVDA) shares plunged Monday amid concerns that a powerful, cost-efficient AI model developed by Chinese startup DeepSeek could herald a reduction in big tech's investment in the chipmaker's pricey AI offerings.