Nvidia Faces Major Losses As DeepSeek's AI Breakthrough Triggers Massive Sell-Off in U.S. Tech Sector

Benzinga

DeepSeek, a young Chinese AI startup, triggered a steep sell-off in U.S. tech stocks Monday as its cost-effective AI models raised doubts about the vast investments by American tech giants in artificial intelligence. DeepSeek was founded in 2023 and released its R1 reasoning model on January 20th, outperforming OpenAI's latest model in tests. DeepSeek sets itself apart with reasoning capabilities that generate a "chain of thought" before providing final answers to improve accuracy. DeepSeek's app surged to the top of Apple's U.S. download charts. Nvidia's shares fell sharply alongside a broader tech market decline.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02DeepSeek, a young Chinese AI startup, triggered a steep sell-off in U.S. tech stocks Monday as

00:07its cost-effective AI models raised doubt about the vast investments by American tech giants

00:12in artificial intelligence. DeepSeek was founded in 2023 and released its R1 reasoning model on

00:18January 20, outperforming OpenAI's latest model and test. DeepSeek sets itself apart with reasoning

00:24capabilities that generate a chain of thought before providing final answers to improve

00:28accuracy. DeepSeek's ads surged to the top of Apple's U.S. downloaded charts.

00:34NVIDIA shares fell sharply alongside a broader tech market decline.

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