DeepSeek's AI Model Triggers Tech Stock Selloff, Nvidia and ASML Plunge
2025-01-27
Nvidia and ASML Holding NV shares plummeted on Monday after Chinese AI startup DeepSeek released a new AI model offering comparable performance to Western counterparts at a fraction of the cost. Nvidia shares fell about 9% in premarket trading, while ASML dropped as much as 11%. The Nasdaq 100 futures also slumped. DeepSeek's success raises concerns about the disruption to the current AI business model, which relies heavily on high-end chips and significant computing power. The situation highlights China's potential to circumvent US export restrictions and underscores the geopolitical implications for the tech sector.
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