DeepSeek’s New AI Tech Causes Major Drop in Nvidia and Other Tech Company Stocks

Japanese technology companies experienced a drop in their stock values after China introduced a new, more affordable AI chatbot called DeepSeek. This chatbot is as good as the ones from U.S. tech giants but costs much less. 

This caused a big drop in the stock price of Nvidia, a major AI company, losing a huge market value.

This new AI development also coincided with concerns about possible new U.S. tariffs, which led to fears of a trade war, affecting currency values and global markets. 

The introduction of DeepSeek suggests that companies might not need to spend as much as before to get powerful AI capabilities.

The reaction in the financial markets was significant, with drops in major stock indices and tech stocks like Broadcom also seeing big losses. 

This event could lead to changes in how companies invest in and develop AI technologies.