Chinese AI DeepSeek devastated Nvidia

Nvidia's stock experienced a significant decline, dropping 17% and erasing $589 billion from its market capitalization—the largest single-day loss in U.S. stock market history. This downturn was triggered by the emergence of DeepSeek, a Chinese AI startup that introduced a free AI assistant claiming to operate with less data and at a fraction of the cost of existing models. DeepSeek's assistant quickly became the most downloaded free app in the U.S., surpassing competitors like OpenAI's ChatGPT. The rise of DeepSeek has raised concerns about the future dominance of Western companies in the AI sector and the sustainability of their substantial investments.