US company Nvidia has fallen in price by more than $600bn in a day amid the success of Chinese rival ChatGPT – DeepSeek, writes the Financial Times. Shares in the artificial intelligence (AI) chip maker fell 17.8 per cent. This is the worst performance in a day since March 2020, when the stock collapsed at the start of the Covid-19 pandemic.

The company’s capitalisation has fallen by around $620bn.

This is by far the largest drop in the company’s value in history.

Nvidia lost the title of ‘the world’s most valuable company’ to Apple and Microsoft. The fortune of its CEO Nvidia Jensen Huang decreased by $ 21 billion, from $ 124.4 billion to $ 103.1 billion, writes Forbes.

The S&P 500 index lost 1.5 per cent, while the Nasdaq 100 index fell almost 3 per cent.

Shares of the American technology giant collapsed amid the growing popularity of a new model of artificial intelligence Chinese DeepSeek – a competitor of AI from OpenAI. By 27 January, DeepSeek had overtaken ChatGPT in downloads from the App Store.

Last week, DeepSeek unveiled an updated artificial intelligence model that the company says can compete with OpenAI’s technology. The app differs from ChatGPT and other chatbots in that it justifies responses to user queries. At the same time, the development costs were significantly lower than those of American competitors, RBC specifies.

Leave a Reply

Your email address will not be published. Required fields are marked *