Current AI News
On Monday, January 27, 2025, the stock market experienced a significant downturn following the release of DeepSeek, a cost-effective AI assistant developed by a Chinese startup. This development led to a substantial sell-off in technology stocks, particularly those heavily invested in artificial intelligence infrastructure.
Nvidia, a leading producer of AI hardware, saw its shares plummet by approximately 17%, resulting in a loss of nearly $593 billion in market value—the largest single-day decline for any company to date.
The broader technology sector also faced declines, with major indices reflecting the downturn. The S&P 500 and Nasdaq Composite both fell, driven by significant losses in tech stocks.
In total, the market capitalization of companies in the semiconductor, power, and infrastructure sectors, all of which are exposed to AI developments, decreased by more than $1 trillion.
However, by Tuesday, January 28, 2025, the market began to recover as investors reassessed the situation. Nvidia's shares rebounded by over 6%, and the broader technology sector showed signs of stabilization.
The initial market reaction underscores the sensitivity of tech stocks to developments in artificial intelligence, especially concerning competitive advancements from international entities like DeepSeek.
