Listeners:
Top listeners:
-
play_arrow
Stocks Tumble As China Challenges US’ AI Dominance
By Stefan J. Bos, Chief International Correspondent
NEW YORK/BUDAPEST (Worthy News) – China’s new artificial intelligence (AI) model, DeepSeek, spooked investors Monday, sparking a $1 trillion withdrawal from stocks in the United States and Europe.
In New York, the tech-focused Nasdaq index was down nearly 3.5 percent at the market open as investors ran for the exits.
Several tech companies that banked on a surge of AI interest sold off, with U.S. chipmaker Nvidia down more than 12 percent as the trading day began.
Nvidia has exploded in value in recent years as it dominates the chip market at the center of the global AI race. It’s one of three companies with a market capitalization above $3 trillion.
In Europe, Netherlands-based ASML Holding NV, which designs and produces the machines that make the world’s most advanced computer chips, also saw its stock plunge up to 12 percent before slightly recovering.
Analysts said the Monday sell-off underscores anxieties about whether China is challenging America’s AI dominance and whether the multi-billion dollar spending on artificial intelligence ― and the specialized chips, data centers, and related power infrastructure ― is justified.
The DeepSeek application, launched last week, overtook rivals, including ChatGPT, to become the most downloaded free app in the United States. However, its creators claim that it cost less than $6 million to develop, a far cry from the billions spent in the U.S.
CHEAPER CHIPS
They also used H800 chips, which are not top-of-the-line.
These less advanced chips were reportedly developed as a reduced-capability product to circumvent restrictions on sales to China. Yet, according to sources familiar with the situation, U.S. sanctions eventually banned them.
With China now firmly in the AI race, some commentators have raised questions about how soon American investments will translate into straightforward money-making use cases for U.S. companies.
The emergence of the low-cost Chinese competitor added to skepticism over those investments. “Markets are sensitive to this situation, as heightened price competition raises doubts about the timing of when profits from multi-billion-dollar investments will materialize,” complained Alex Kuptsikevich, chief market analyst at FxPro, a London-based online broker.
“DeepSeek shows that it is possible to develop powerful Al models that cost less,” added Vey-Sern Ling, managing director at Union Bancaire Privee, the Geneva-based private bank and wealth management firm.
“It can potentially derail the investment case for the entire Al supply chain, which is driven by high spending from a small handful of hyperscalers.”
If the losses hold, the Nasdaq 100 and Europe’s Stoxx 600 technology sub-index will experience a market capitalization wipeout of $1.2 trillion, according to market watchers.
Besides stocks, Bitcoin also lost value, falling below $100,000 on Monday, its lowest in 11 days, amid broader market anxiety over the surging popularity of the Chinese artificial intelligence model, which sparked a selloff in Western Al-related stocks.
The world’s biggest cryptocurrency struggled to make gains last week, as a rally that had seen it break above $100,000 after U.S. President Donald J. Trump’s election and endorsement of crypto ran out of steam, market observers noticed.
Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
Latest News from Worthy News
A Dutch community remained in shock Saturday after a 13-year-old girl was detained following the discovery of her parents’ bodies in their home in the northern Netherlands.
Bolivian President Rodrigo Paz declared a 90-day state of emergency Saturday, empowering the military to clear road blockades after nearly 50 days of anti-government protests that have included widespread road blockades, leaving at least 14 people dead and crippling the nation’s economy.
A powerful thunderstorm system sweeping across Western Europe killed at least one person in the Netherlands, injured several others in Belgium and Germany, and caused widespread damage as nearly 190,000 lightning flashes illuminated the skies, authorities said Saturday.
Israeli strikes killed at least 10 people in Lebanon on Saturday despite a ceasefire that took effect hours earlier, officials said, with Israel claiming it was responding to attacks by the Iran-backed Hezbollah group.
Israel and Iran-backed Hezbollah have agreed to a ceasefire that was to begin Friday afternoon, Worthy News learned.
At least 10 people, including four children, were injured in a Russian strike on Ukraine’s northeastern Kharkiv region, Ukrainian authorities said Friday. In southern Ukraine, the State Emergency Service reported that one person was killed and four others were injured in a separate Russian attack on the Odesa region.
President Donald Trump signed the temporary peace deal with Iran ahead of schedule Wednesday at the Palace of Versailles in France, kicking off negotiations over a final nuclear deal.
WHO WE ARE
The Psalms, hymns, and spiritual songs encapsulate the beauty, wisdom, and eternal truths found in the Bible, creating an immersive experience that resonates with believers and seekers alike.
CONTACT
- +1 908 280-4246
- Essex County, USA
- info@tnjrfm.com