The US stock market faced a dramatic downturn on Monday after China’s DeepSeek unveiled a groundbreaking, cost-efficient artificial intelligence model. The announcement triggered a massive selloff, sending shockwaves through the tech-heavy Nasdaq Composite, which fell 3.1%.
Nvidia, the linchpin of the AI boom, led the collapse, with shares plummeting nearly 17%. This marked a record single-day loss in market capitalization for a Wall Street stock, according to LSEG data. Nvidia’s market-cap wipeout was more than double the previous record it set in September.
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Tech Billionaires Take a Massive Hit
The losses extended beyond the markets, hitting the world’s richest individuals hard. The 500 wealthiest people collectively lost $108 billion according to a Bloomberg report. Nvidia co-founder Jensen Huang saw his net worth plunge by $20.1 billion, a staggering 20% decline. Oracle co-founder Larry Ellison endured the biggest absolute loss, with $22.6 billion erased from his fortune—12% of his wealth, the news agency reported.
Other billionaires tied to tech felt the sting as well. Michael Dell, founder of Dell Technologies, lost $13 billion, while Binance co-founder Changpeng “CZ” Zhao saw his net worth drop by $12.1 billion.
Also ReadUS Stock Market: DeepSeek jolts US market, tech stocks suffer $1 trillion rout; Nvidia down 17%
DeepSeek’s Disruption Raises Market Concerns
The selloff underscores DeepSeek’s disruptive potential in the AI market. By developing a sophisticated AI model at a fraction of Silicon Valley’s cost, the Chinese firm has shaken investor confidence in US tech dominance. Nvidia, Oracle, and other leading companies face increasing pressure to defend their competitive edge in the AI space. Capital spending across all Big Tech firms is expected to reach $200 billion in 2025, according to a Bloomberg Intelligence report.
As Wall Street recalibrates, the financial hit to tech leaders serves as a stark reminder of the volatility surrounding the AI industry’s rapid evolution. Investors will now watch closely for industry responses to DeepSeek’s unexpected rise
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