ChatGPT vs DeepSeek vs Alibaba’s Qwen: China reacts
Jing Daily
29 Jan 2025
China’s DeepSeek AI has sent shockwaves through the US tech sector, triggering a staggering $969 billion market shakedown. Unlike its American counterparts, which rely on power-hungry chips and vast energy resources, DeepSeek achieves competitive AI performance with cost-effective alternatives — disrupting an industry that thrives on expensive infrastructure.
The market reaction was swift. Over 70% of the 69 stocks in the Technology Select Sector ETF (XLK) saw declines, with Nvidia (NVDA) alone shedding nearly $600 billion — more than the individual worth of 485 S&P 500 companies.
The fallout also hit semiconductor, power, and infrastructure stocks tied to AI, wiping out over $1 trillion in value.
However, investors quickly seized on the dip as a buying opportunity. Technology stocks regained some ground yesterday, with Nvidia rebounding 8.9% as bargain hunters stepped in.
While the market is stabilizing, DeepSeek’s rise signals a fundamental shift in the AI race, proving that efficiency, not just cutting-edge hardware, could reshape the industry.
The question now: Can US tech giants adapt before China’s AI momentum changes the game for good?
China’s DeepSeek AI has sent shockwaves through the US tech sector, triggering a staggering $969 billion market shakedown. Unlike its American counterparts, which rely on power-hungry chips and vast energy resources, DeepSeek achieves competitive AI performance with cost-effective alternatives — disrupting an industry that thrives on expensive infrastructure.
The market reaction was swift. Over 70% of the 69 stocks in the Technology Select Sector ETF (XLK) saw declines, with Nvidia (NVDA) alone shedding nearly $600 billion — more than the individual worth of 485 S&P 500 companies.
The fallout also hit semiconductor, power, and infrastructure stocks tied to AI, wiping out over $1 trillion in value.
However, investors quickly seized on the dip as a buying opportunity. Technology stocks regained some ground yesterday, with Nvidia rebounding 8.9% as bargain hunters stepped in.
While the market is stabilizing, DeepSeek’s rise signals a fundamental shift in the AI race, proving that efficiency, not just cutting-edge hardware, could reshape the industry.
The question now: Can US tech giants adapt before China’s AI momentum changes the game for good?
