Pro’s Don’t Panic: DeepSeek's AI Breakthrough Challenges Largest Tech Stocks

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Pro's Don't Panic: DeepSeek's AI Breakthrough Challenges Largest Tech Stocks

In a development that has sent shockwaves through the artificial intelligence industry, Chinese startup DeepSeek has achieved what many thought impossible: creating a world-class AI model for less than $6 million, a fraction of the hundreds of millions typically spent on computing power alone by major players like OpenAI (ChatGPT) and Anthropic (Claude).

This development has raised concerns about the future of established players in the AI industry. Nvidia, whose high-margin GPU business has been central to the AI boom, faces particular scrutiny. Shares of chipmaker Nvidia have lost $730 billion in value since November 2024. As the news of DeepSeek's success broke, NVDA shares were down more than -17% today.

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