Bloomberg reports global wealthiest shed $100bn in one day
According to Bloomberg, the fortunes of the world’s wealthiest individuals have diminished due to a selloff associated with the Chinese AI application DeepSeek. Read Full Article at RT.com
TroibNews 
The emergence of China's DeepSeek AI assistant has significantly impacted the stock market, particularly affecting Western tech companies, as reported by Bloomberg. On Monday, the combined wealth of the world’s 500 richest individuals plummeted by $108 billion due to a tech-driven selloff linked to the rapid rise of DeepSeek. This downturn reversed gains in the technology portfolios of billionaires such as Nvidia co-founder Jensen Huang and Oracle’s Larry Ellison, both heavily invested in AI technologies.
Within just a few days of its launch, DeepSeek's AI assistant became incredibly popular, surpassing US-based OpenAI’s ChatGPT to become the top program on the Apple App Store over the weekend.
The startup claims to have developed its latest AI model at a fraction of the cost required by leading firms in the US, which dominate the global AI market. This surge in DeepSeek's popularity triggered a dramatic drop in tech stock prices on Monday, with the NASDAQ Composite Index falling by 3.1% and the S&P 500 declining by 1.5%.
Nvidia saw its stock price decrease by 17%, equating to a loss of about $600 billion in market value, which led to Huang losing $20.1 billion, a 20% decline in his wealth, as noted by the Bloomberg Billionaires Index. Oracle's shares fell around 14%, resulting in Ellison losing $22.6 billion, or 12% of his net worth. Other tech leaders also suffered significant losses, with Dell’s Michael Dell seeing his fortune decrease by $13 billion and Binance co-founder Changpeng Zhao losing $12.1 billion.
Despite the turmoil, some prominent figures in the tech sector managed to avoid the sell-off's effects. Meta founder Mark Zuckerberg saw his net worth increase by $4.3 billion at the close of trading on Monday, while Amazon founder Jeff Bezos's wealth rose by approximately $600 million.
Experts suggest that DeepSeek's innovation challenges the prevailing notion in the US that substantial capital investments are essential for AI advancement. However, analysts also highlight that DeepSeek's cost-effective approach is influenced by the Chinese tech sector's restricted access to advanced chips due to US export controls. The company reported that it utilized Nvidia’s H800 chips, which are exempt from these restrictions, for training its recent AI model, spending less than $6 million, in stark contrast to the billions that their American counterparts spend on similar technologies.
In response to the success of the app, former US President Donald Trump indicated that it should act as a “wake-up call” for American tech giants to develop more affordable AI solutions. He stated, “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… So instead of spending billions and billions, you’ll spend less and hopefully achieve the same results,” during a press conference on Monday.
For more information on economic and financial matters, visit RT's business section.
Rohan Mehta for TROIB News
Within just a few days of its launch, DeepSeek's AI assistant became incredibly popular, surpassing US-based OpenAI’s ChatGPT to become the top program on the Apple App Store over the weekend.
The startup claims to have developed its latest AI model at a fraction of the cost required by leading firms in the US, which dominate the global AI market. This surge in DeepSeek's popularity triggered a dramatic drop in tech stock prices on Monday, with the NASDAQ Composite Index falling by 3.1% and the S&P 500 declining by 1.5%.
Nvidia saw its stock price decrease by 17%, equating to a loss of about $600 billion in market value, which led to Huang losing $20.1 billion, a 20% decline in his wealth, as noted by the Bloomberg Billionaires Index. Oracle's shares fell around 14%, resulting in Ellison losing $22.6 billion, or 12% of his net worth. Other tech leaders also suffered significant losses, with Dell’s Michael Dell seeing his fortune decrease by $13 billion and Binance co-founder Changpeng Zhao losing $12.1 billion.
Despite the turmoil, some prominent figures in the tech sector managed to avoid the sell-off's effects. Meta founder Mark Zuckerberg saw his net worth increase by $4.3 billion at the close of trading on Monday, while Amazon founder Jeff Bezos's wealth rose by approximately $600 million.
Experts suggest that DeepSeek's innovation challenges the prevailing notion in the US that substantial capital investments are essential for AI advancement. However, analysts also highlight that DeepSeek's cost-effective approach is influenced by the Chinese tech sector's restricted access to advanced chips due to US export controls. The company reported that it utilized Nvidia’s H800 chips, which are exempt from these restrictions, for training its recent AI model, spending less than $6 million, in stark contrast to the billions that their American counterparts spend on similar technologies.
In response to the success of the app, former US President Donald Trump indicated that it should act as a “wake-up call” for American tech giants to develop more affordable AI solutions. He stated, “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… So instead of spending billions and billions, you’ll spend less and hopefully achieve the same results,” during a press conference on Monday.
For more information on economic and financial matters, visit RT's business section.
Rohan Mehta for TROIB News
