World’s most valuable company making AI chips loses $600bn in biggest market loss EVER after China’s DeepSeek launch
World’s most valuable company making AI chips loses $600bn in biggest market loss EVER after China’s DeepSeek launch
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THE world's most valuable company, Nvidia, has suffered the biggest market value less ever in a single day. The AI tech firm haemorrhaged $589billion - 17 per cent of its value - yesterday after the market was rocked by the cheap Chinese rival DeepSeek.
![[Illustration of ChatGPT and DeepSeek logos on screens.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2025-hong-kong-china-global-967284618.jpg?strip=all&w=960)
This was by far the biggest wipe-out in history, dwarfing the previous record of a $279billion loss in market value to the same company in September 2024. Nvidia become the most valuable company ever in June last year, but was unseated from the top spot yesterday after slipping from $3.5trillion to $2.9trillion - less than Apple and Microsoft.
![[Jensen Huang, Nvidia CEO, holding a computer chip.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/500-dropped-dow-finished-higher-967184323.jpg?strip=all&w=960)
The American AI stock plummeted after a cheap Chinese alternative soared to the top of the App Store's ratings, beating ChatGPT - the chatbot developed by OpenAI using Nvidia chips. DeepSeek's team claim it was developed for just $6million - a fraction of the $5billion that has been poured into ChatGPT.
![[Illustration of Xi Jinping with statements about human rights, Taiwan, and internet control in China.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/JB_27_01_CHINA-AI-DEEPSEEK_COMP_a55d6e.jpg?strip=all&w=960)
Its storming arrival to the market shook the idea that the US is the clear frontrunner in the global AI race. Nvidia was not the only company hit, with at one point American tech collectively down a whopping $1 trillion. President Donald Trump said DeepSeek must be a "wake-up call for our industries that we need to be laser-focused on competing to win".
![[Illustration of a smartphone displaying the DeepSeek app against a blurred Chinese flag.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2025-hong-kong-china-global-967284563.jpg?strip=all&w=960)
He also suggested that competition from the Chinese was a positive thing: “That’s good because you don’t have to spend as much money. I view that as a positive, as an asset," he said. Similarly, Sam Altman, CEO of OpenAI, said it was "invigorating to have a new competitor".
![[Smartphone displaying the DeepSeek app.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/newspress-collage-p93tkw581-1737977257321.jpg?1737977283&strip=all&w=960)
