China's DeepSeek created a stir in the tech world, these 'Baahubali' collapsed like a pack of cards.

 | 
as

AI has become a new issue of war among the countries of the world. There is a competition among the world's big economies to see how far they can go in the field of AI. Recently, after taking oath, Donald Trump announced a project named Stargate on AI. Its budget was 500 billion dollars. This project was brought to stop China's growing steps in AI. But nobody knew that China is planning something else to shake Silicon Valley.

 

 

Before America could make any big announcement, China put forward the DeepSeek AI model. Due to which the stock markets of the world, especially America, collapsed. From Oracle to Nvidia and the shares of all American tech companies started falling. Due to this attack by China, the tech companies' market has suffered a loss of more than one trillion dollars. Let us also tell you which American companies have suffered huge losses due to China's DeepSeek AI.

Nvidia suffers the biggest loss

Shares of Nvidia, one of the world's largest tech companies working on AI, fell by a massive 17 percent. Due to which the company's market cap decreased by $ 590 billion. In the history of the US stock market, no company has ever suffered such a huge loss. Nvidia, which was once the stock market's favorite riding the AI ​​wave, is now facing uncertainty amid the success of DeepSeek.

 

Talking about other chip companies and companies working on AI, they also faced a lot of pressure. Broadcom's stock fell 17 percent, while server maker Super Micro Computer fell 13 percent. Oracle closed down 14 percent due to growing concerns about the sustainability of investments in AI infrastructure. Google's parent company Alphabet's stock fell by 4 percent. On the other hand, Microsoft's stock fell by more than 2 percent. Elon Musk's company Tesla's stock also closed down by 2.32 percent.

American index fell flat

DeepSeek's attack was also felt in US stock market indexes. The tech-heavy Nasdaq Composite fell 3.1 percent, its biggest one-day drop in recent months. The S&P 500, which recently hit a record high, fell 1.5 percent. However, the Dow Jones Industrial Average, which has less exposure to Big Tech, gained 0.7 percent. IG North America CEO JJ Kinahan said it was a sell-off that was bound to happen eventually. The energy sector also took a hit, with companies involved in AI-related power demand suffering heavy losses. Constellation Energy, which was leading the AI ​​revolution, saw its shares fall 21 percent.

Increased demand for bonds

The turmoil in the stock market has seen investors turn to safe havens such as US government bonds. The 10-year Treasury yield fell to 4.529 per cent, reflecting growing demand for bonds as a haven. Meanwhile, Bitcoin briefly fell below the $100,000 mark. By the time the market closed, Bitcoin prices saw a recovery and reached $101,405.

A trillion dollar loss

Due to the fall in the shares of American tech companies, the market cap of these companies has suffered a loss of more than one trillion dollars. More than half of the total loss is of Nvidia. Which is working the most on chip making and AI. The company's market cap has suffered a loss of about 600 billion dollars. On the other hand, Oracle's market cap has suffered a loss of 70.81 billion dollars. Due to the big fall in the shares of Google, Tesla, Microsoft and supercomputers, the market cap of the companies has seen a big decline.