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China's AI challenge
The Herald
|January 29, 2025
THE emergence of a Chinese artificial intelligence (AI) firm, Deep-Seek, rocked United States technology firms' stocks on Monday night, amid concerns that the new low-cost AI model would challenge their dominance.
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Technology shares plunged and chip maker Nvidia suffered falls of nearly 17% on Monday, as US President Donald Trump warned DeepSeek's emergence was a "wake-up call" for existing AI providers.
Nvidia's drop in share price marked the biggest ever one-day loss in market value on Wall Street, of about $589 billion (£473 billion).
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