Daily Management Review

Nvidia loses over $600 billion in capitalization amid the success of China's DeepSeek


01/28/2025


Shares of American semiconductor company Nvidia, known for its focus on artificial intelligence, dropped by 17.8%, resulting in a capitalization loss of approximately $620 billion, reports the Financial Times. The newspaper observes that this set a record for the firm regarding the loss of market capitalization in just one day.



Will Buckner
Will Buckner
The achievements of Chinese AI startup DeepSeek, operating on a significantly smaller budget, have led investors to scrutinize the expenditures of US tech giants on chip manufacturers like Nvidia, according to the Financial Times.

DeepSeek's newest AI model climbed to the peak of Apple's AppStore rankings over the weekend, sparking concerns regarding the proposed hundreds of billions allocated for the technology by firms like Microsoft and Alphabet. According to Union Bancaire Privee managing director Weisern Ling, DeepSeek demonstrates that creating effective AI models can be accomplished at reduced expenses.

The agency reported that DeepSeek's AI model rivals the newest products from OpenAI and Meta. Investor Marc Andreessen lauded DeepSeek's progress as “one of the most unexpected and remarkable accomplishments.”

source: ft.com