China's DeepSeek Company Launches AI Market
Technology
On January 27, Monday, stocks of Nasdaq, Nvidia, and technology companies sharply dropped in Japan. The main reason for this was that China launched a market for artificial intelligence with cheaper models.
The DeepSeek startup, a new Chinese artificial intelligence, mentioned that it uses cheap chips and fewer data, creating a new direction for AI development.
The free assistant provided by DeepSeek is expected to increase demand in the AI supply chain, from chip manufacturers to data centers. This could especially affect the demand for chips among technology companies.
Nasdaq 100 futures in Europe dropped by 2.6%, and S&P 500 futures decreased by 1.4%. Nvidia’s stock fell by 8.5%, and Advantest (a Japanese chip supplier) dropped by 7%. Nvidia stocks listed in Frankfurt declined by about 7%, while companies like Tesla, Amazon, and Meta saw a drop of more than 2% in Europe.
Wong Kok Hung, head of Maybank’s equities, explained, "These trades will lead to unexpected changes, and now DeepSeek has created a resting opportunity for investors and traders."
Meanwhile, SoftBank Group, an investor in AI-focused startups, continues to invest in companies like DeepSeek, but the impact of this will become clear with time.
The free assistant provided by DeepSeek is expected to increase demand in the AI supply chain, from chip manufacturers to data centers. This could especially affect the demand for chips among technology companies.
Nasdaq 100 futures in Europe dropped by 2.6%, and S&P 500 futures decreased by 1.4%. Nvidia’s stock fell by 8.5%, and Advantest (a Japanese chip supplier) dropped by 7%. Nvidia stocks listed in Frankfurt declined by about 7%, while companies like Tesla, Amazon, and Meta saw a drop of more than 2% in Europe.
Wong Kok Hung, head of Maybank’s equities, explained, "These trades will lead to unexpected changes, and now DeepSeek has created a resting opportunity for investors and traders."
Meanwhile, SoftBank Group, an investor in AI-focused startups, continues to invest in companies like DeepSeek, but the impact of this will become clear with time.
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