Nvidia suffers $589 Billion loss in market value as Deepsake thrives

Nvidia, the global leader in accelerated computing, saw its market value plummet by a staggering $589 billion on Monday. The company’s shares nosedived by 17 per cent during midday trading on Wall Street, sending shockwaves across global markets and highlighting Nvidia’s outsized influence on major indices.

The ripple effects were felt far and wide. In the United States, the S&P 500 dropped 2.3 per cent, while the tech-heavy Nasdaq 100 fell by 3.6 per cent. European markets weren’t spared either, with Frankfurt and Paris closing in the red, while London’s FTSE 100 ended flat. Asian markets also recorded losses, reflecting the global unease sparked by Nvidia’s decline.

Tech giants like Microsoft and Alphabet, Google’s parent company, saw their shares dip as well. However, Meta managed to defy the trend, trading in positive territory.

Nvidia has long been a darling of the artificial intelligence (AI) boom, with its cutting-edge semiconductors powering the infrastructure behind AI technologies.

But the emergence of DeepSeek, a Chinese chatbot platform, appears to have disrupted the status quo. DeepSeek recently overtook OpenAI’s ChatGPT as the top-rated free app on Apple’s US App Store, signalling a potential shift in the AI landscape.

What’s more, DeepSeek’s researchers revealed that they trained their latest AI model using Nvidia’s H800 chips—despite US export restrictions aimed at limiting China’s access to advanced GPU technology. The training reportedly cost just $6 million, a fraction of the typical expense for developing high-end AI systems. This breakthrough has raised eyebrows and highlighted China’s growing prowess in the AI race.

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The timing of DeepSeek’s rise is particularly noteworthy as the US doubles down on its efforts to maintain dominance in AI. The recently unveiled Stargate Project, a collaboration between Oracle, Japan’s SoftBank, and OpenAI aims to bolster US AI capabilities, create thousands of jobs, and enhance national security. Announced by President Donald Trump, the initiative underscores the high-stakes competition between global powers in the AI arena.

As Nvidia grapples with its market setback, the AI industry is at a crossroads. Will DeepSeek’s ascent mark the beginning of a new era in AI innovation, or will Nvidia and its US allies reclaim their footing? One thing is certain: the battle for AI supremacy is heating up, and the world is watching.