China’s AI ‘DeepSeek’ Causes Collapse in Bank Accounts of Top 500 Richest People
Chinese artificial intelligence (AI) developer DeepSeek has recently greatly impacted global stock markets. As a result, the world’s 500 richest people have collectively lost $108 billion. De-epSeek’s rise has dragged down various stock market indices, with billionaires involved in the AI ​​sector being the worst hit.
AI Impact:
Nvidia Corporation co-founder Jensen Huang lost 20 percent of his net worth, which is $20.1 billion. On the other hand, Oracle Corporation co-founder Larry Ellison lost $22.6 billion, 12 percent of his net worth. Similarly, Dell Inc.’s Michael Dell lost $13 billion, and Binance Holdings Ltd. co-founder Changpeng Czer Zhao lost $12.1 billion.
The tech sector’s top earners collectively lost $94 billion in wealth, about 85 percent of the total decline in the Bloomberg index. As a result, the Nasdaq Composite Index fell 3.1 percent, and the S&P 500 Index fell 1.5 percent.
The Rise of DeepSeek:
Hangzhou-based DeepSeek has been building artificial intelligence models since 2023. However, their free chatbot app “DeepSeek R1” recently topped the global download charts. As a result, many Western investors have turned their attention to this new AI technology. So many new users joined that DeepSeek experienced a system outage and was forced to limit sign-ups. Later, signing up with a Chinese phone number was only possible.
DeepSeek unexpected entry into the AI ​​space has created a new challenge. In particular, they claim to have built a powerful model for just $5.6 million. This challenges the Silicon Valley’s notion that building large AI models requires a huge amount of capital.
DeepSeek entry into the AI ​​race has been a major blow to the billionaires involved in the Western AI supply chain, who have been the biggest drivers of stock markets for the past two years.
