DeepSeek sends a shockwave through markets

A cheap Chinese language model has investors in Silicon Valley asking questions

It did not take much for the euphoria over artificial intelligence (AI) to turn into alarm. On January 27th stockmarkets in America and Europe convulsed. The share price of Nvidia, America’s AI-chip champion, fell by 17%, erasing $600bn of market value, the biggest one-day loss in the history of America’s stockmarket. Other businesses in the AI supply chain, from data-centre landlords to makers of networking gear, suffered a similar fate.

This article appeared in the Business section of the print edition under the headline “Shockwaves”

From the February 1st 2025 edition

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