Nvidia Loses $600 Billion Due to Chinese Rival ChatGPT
Photo is illustrative in nature. From open sources.
Shares of the US AI chipmaker fell 17.8%. The collapse came as the popularity of a new AI model from China's DeepSeek, a competitor to ChatGPT, grew.
American company Nvidia has fallen by more than $600 billion in a day amid the success of its Chinese competitor ChatGPT, DeepSeek, writes the Financial Times.
Shares of the AI chipmaker fell 17.8%, their worst daily performance since March 2020, when shares tumbled at the start of the pandemic.covid-19 .
The company's market cap has fallen by approximately $620 billion, making it the largest drop in company value in history to date.
Nvidia has lost its title as the world's most valuable company, losing toAPPLE andMICROSOFT . Its CEO Jensen Huang's fortune fell by $21 billion,
from $124.4 billion to $103.1 billion, writesFORBES .
The S&P 500 index lost 1.5%, the indexThe NASDAQ 100 fell nearly 3%.
The US tech giant's shares have fallen as China's DeepSeek, a rival to OpenAI, has gained popularity for its new AI model. By January 27, DeepSeek had overtaken ChatGPT in App Store downloads.
Last week, DeepSeek unveiled an updated AI model that the company says can compete with OpenAI. The app differs from ChatGPT and other chatbots in that it provides rationale for its responses to user queries. And it was developed at a significantly lower cost than its American competitors.
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