Nvidia fights back after shock £500bn Wall Street rout as Trump warns Chinese AI is 'wake-up call' for US tech
Nvidia fights back after shock £500bn Wall Street rout as Trump warns Chinese AI is 'wake-up call' for US tech
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Nvidia shares clawed back some of their losses last night as Donald Trump warned the emergence of an artificial intelligence (AI) start-up from China was a ‘wake-up call’ for US tech. Having tumbled 17 per cent on Monday, wiping almost £500bn off its value in the biggest one-day stock market loss in corporate history, the shares rose almost 9 per cent.
The rally will come as a relief for the many British investors exposed to the microchip giant through direct share ownership or through their pensions and other investments. The success of a free chatbot from Chinese firm DeepSeek has sent shockwaves through Silicon Valley and Wall Street – sparking fears the West could fall behind in the AI arms race while also casting doubt over the sky-high valuations of US tech stocks.
The Hangzhou-based firm claimed its model was developed for just £4.8million – calling into question the billions of dollars of investment earmarked in the US for the technology. DeepSeek has also quickly gained popularity with users, overtaking ChatGPT to become the most downloaded chatbot on the Apple App store on Monday.
Chatbot shock: Donald Trump warned the emergence of an artificial intelligence start-up from China was a 'wake-up call' for US tech. Speculators betting against Nvidia shares are estimated to have made a £5billion profit on Monday alone. Trump said: ‘The release of DeepSeek, AI from a Chinese company, should be a wake-up call for our industries that we need to be laser-focused on competing to win.’.
