DeepSeek’s Open-Source AI Costs NVIDIA $600 Billion, Triggers $1 Trillion Sector Slump – BitRss

Nvidia’s stock plunged Monday, losing $600 billion in market value—the largest single-day market cap loss in history—as global attention turned to Chinese AI startup DeepSeek.

The tech giant’s stock began the day trading at $140 but fell 16% and closed at $118 as news of DeepSeek’s low-cost AI developments and high-performance spread.

Its plunge reflects a broader trend, with the U.S. tech industry shedding an estimated $1 trillion in market capitalization and those concerns spreading to other areas of the economy, including crypto.

DeepSeek’s ability to outperform OpenAI’s o1 while operating at a significantly lower cost, reportedly under $5 million, has rocked the tech industry, which has prioritized computational power over efficiency.

Its success has propelled DeepSeek to become the top free app in the U.S., according to Appfigures’ data.

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