News Every Day |

DeepSeek’s $1 trillion stock market crash: Nvidia, TSMC, and Broadcom recover some losses after AI shock

Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

News of DeepSeek’s capabilities—not to mention the fact that it is open-source and free for anyone to use and modify—sent U.S. markets reeling, including the tech-heavy Nasdaq, which saw $1 trillion evaporate from its market cap as AI-adjacent stocks such as Nvidia and Broadcom were hit hard. U.S.-listed shares of TSMC, which trade on the New York Stock Exchange (NYSE), also took a dive.

But today, some of those stocks are recovering, at least to a degree. Here’s what you need to know about DeepSeek and its latest market impact.

‘DeepSeek R1 is AI’s Sputnik moment.’

Investor and engineer Marc Andreessen posted on X yesterday that ‘Deepseek R1 is AI’s Sputnik moment.’

DeepSeek R1 is the Chinese firm’s latest reasoning mode. “AI’s Sputnik moment” refers to the time when the Soviets leapfrogged the U.S. in the space race with the launch of the world’s first satellite, a milestone that caught America off guard.

https://twitter.com/pmarca/status/1883640142591853011

Andreessen and many other tech experts seem to believe that DeepSeek is a similar milestone—and for several reasons.

First, not only did DeepSeek’s AI model outperform reigning U.S. champions like OpenAI’s ChatGPT and Meta’s Llama, but it was made at a fraction of the cost that U.S. tech giants spent developing their homegrown LLMs. DeepSeek reportedly cost less than $6 million to train, while U.S. tech giants have spent hundreds of millions or billions to develop theirs. 

Second, DeepSeek was reportedly trained on midrange AI hardware—Nvidia’s H800 chips. It was previously thought that a model with such industry-defining capabilities couldn’t be trained on anything but the latest high-end chipsets.

Third, DeepSeek’s LLM is also more energy efficient, making it more environmentally friendly—not to mention cheaper to run.

These three factors made it appear that America’s tech giants vastly overspent on training their LLMs, which now appear to be inferior to DeepSeek. This also suggests that America’s major tech giants operating in the AI space, including OpenAI, Meta, and Google, aren’t as impenetrable to competition as once thought.

When the financial barrier to entry into creating an LLM that could compete with America’s best models was thought to be relatively high—a company would need hundreds of millions or billions in capital to enter the race—it gave America’s tech giants a competition buffer. Not many other tech companies, and certainly not upstarts, would have the financial resources to compete.

But now, if they can compete for just a few million dollars, America’s AI tech giants might have a lot more competition in the months ahead, threatening their AI dominance.

Why did DeepSeek knock $1 trillion off U.S. markets?

After news of DeepSeek’s achievements spread, U.S. markets sank yesterday, especially the tech-heavy Nasdaq. By the end of the day, the Nasdaq had lost $1 trillion. The majority of that loss came from a sell-off of Nvidia shares.

As noted by CNBC, Nvidia’s stock (Nasdaq: NVDA) plummeted nearly 17% yesterday, which wiped almost $600 billion from its market cap. Other AI-adjacent stocks like chipmaker Broadcom Inc. (Nasdaq: AVGO) fell over 17%, and OpenAI’s largest investor, Microsoft Corporation (Nasdaq: MSFT), fell over 2%. These and falls in other AI-related tech stocks helped account for that $1 trillion loss.

As for why DeepSeek sent shares tumbling, it’s because its existence—including how little it cost to train and the inferior hardware it was trained on—is a threat to the interests of some of the reigning American AI giants.

If advanced AI models can now be trained on lower-spec hardware, why should companies keep shoveling money to Nvidia for their latest, most costly chips? And if any company can create a high-performance LLM for a fraction of the cost that was once thought to be required, America’s AI giants are about to have much more competition than ever imagined.

That kind of news scares investors who have invested heavily in America’s AI tech giants over the past few years.

How are U.S. tech stocks reacting this morning?

The good news for tech-heavy investors is that in premarket trading this morning, many U.S. tech stocks that plummeted yesterday are recovering today, albeit slightly.

As of the time of this writing, Nvidia shares are up about 5% over yesterday’s close. Broadcom shares are up about 3.4%. TSMC shares are up about 3.2%. However, shares in Microsoft and in chip-tooling maker ASML are relatively flat.

This doesn’t necessarily mean DeepSeek’s effect on U.S. stock markets is over. Today’s slight recovery of yesterday’s biggest losers likely suggests that some investors are seemingly catching their collective breaths as they wait to see how America’s AI leaders respond to “AI’s Sputnik moment” as the week continues.

Москва

"Известия": две торговые миссии из России посетят Мексику в 2025 году

Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine

'It felt like they kept explaining': MSNBC host points to evidence of White House panic

Caitlin Clark responds to critics ahead of Iowa jersey retirement: 'I really don't care'

‘So terrible even Pep’s disappointed’ – Fans react to Havertz’s shocking sitter miss after Man City’s kamikaze defending

Christopher Dean fights back tears as Dancing On Ice pays emotional tribute to US plane crash victims

Ria.city
Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "2 февраля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...






Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "2 февраля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...


Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Если у вас диабет, прочтите это немедленно! Он лечится за 1 месяц

Калий ускоряет расщепление сахара снижая его уровень до 4,7. Утром съедайте 5 кислых…

Read also

Ducks score 3 unanswered, rally past Canadiens as offense stays alive

François Gauthier-Drapeau Crowned Champion at Paris Grand Slam

Arsenal hoping to land £80k-a-week Man United target before Monday’s deadline

News Every Day |

Alexander: The No. 1 UCLA women keep rolling, but the standards are high

LOS ANGELES – The standards do not change, even as UCLA’s women’s basketball Bruins continue to stack victories and remain the hunted.

They will be No. 1 in the AP poll for the 10th straight week – a record for a Big Ten team – after Sunday’s 79-53 conference victory over Minnesota, a tight game that turned into a rout thanks to a 20-6 Bruins run inside the final 7:06.

But no, the bar hasn’t been raised. It was always high.

This is what coach Cori Close said during a halftime interview over Pauley Pavilion’s loudspeakers, with her team holding a 33-28 lead: “We’re not playing with connectedness defensively. We’re not playing with connectedness and purpose offensively. … We’ve got to get out of our feelings and toughen up.”

Rest assured, the Bruins figured it out. Lauren Betts was swarmed by multiple defenders on most possessions – “Double teams? Try triple and quadruple teams,” Close said – but the 6-7 junior ended up with 11 assists along with six points and six rebounds. Finnish freshman Alina Aarnisalo scored 15 points, Kiki Rice 14 and Londynn Jones 13 – including a crowd-pleasing sequence when she had the ball stripped from her by Amaya Battle, chased after Battle and stole it back, then came back the other way and knocked down a jumper from the corner of the key.

“We talk a lot about our talent being the floor and our character being the ceiling,” Close said. “And two of the character traits that I think are most important for this team is a consistent selflessness and a consistent work ethic that is beyond our opponents. We obviously have a lot of talent pieces, but can we have those character traits be really solid?”

They seem to be, and maybe an indication could have been seen in the Mo Ostin Basketball Center, UCLA’s practice facility, for those up early enough to check it out. Close noted that a good number of players were in the gym at 7:45 Sunday morning, on a game day, shooting and working and preparing.

“Kiki Rice’s elite work ethic has created a culture in our program that you feel left out if you’re not doing the extra work,” Close said. “And that started with what she has brought to our team. And now it’s like every single person comes. And it’s not driven by the coaches. It is driven by the players.”

Rice said it’s “just become a habit for everyone on our team. Everyone’s in there, 12 o’clock game, whatever, super early, rolling in there at 7 a.m. and starting our workouts.

“And I think it’s a testament to just the character and the group that we have that everyone wants to do whatever it takes to be their best selves for this team, and I think it’s definitely been a huge area of growth from like my freshman year to now … Every day before and after practice, there’s someone shooting, so it’s great to see.”

Close noted the other day that she wasn’t hired to win something in January or February. In other words, the goal remains to be the last team standing in April. The Nov. 24 victory over South Carolina at Pauley Pavilion boosted the Bruins into the No. 1 spot and got the nation’s attention, but when I asked Close if that lofty ranking had raised the bar in terms of what she expected in terms of the team’s culture, standards and work ethic, she said no.

“I think that the standard was already there because we already wanted to have championship standards,” she said. “So those were already laid out for us. You know, we study in the off-season every year, what are the Final Four teams doing that maybe we’re not yet. And then what are the gaps that we need to close?”

Here is one example. UCLA has three of the top 25 rebounders in the Big Ten in Betts (9.9 per game going into Sunday, which was third in the conference and 25th nationally), 6-4 junior Janiah Barker (6.8, 21st in the Big Ten) and Angela Dugalić (6.0, tied for 25th in the conference). And the Bruins as a team are fourth nationally in rebounds per game (45.4) and first in rebounding margin  (16.3) and top the Big Ten in both categories. Sunday they had a 36-31 edge over the Gophers.

It’s not enough.

“People can say statistically where we are in the Big Ten, but we go by percentages of our misses,” Close said. “Percentages of our misses on offense, we try to get 40 percent or better. And on defense, we’re trying to get 70 percent or better, 75% actually. We’ve been in the 60s the last three games in a row.

“And I told (the players), ‘Do you guys want to run or not?’ And they said, ‘Yeah, we want to play in transition. We didn’t like grinding it out and have them be able to set their defense and double team.’ (So) get more rebounds. When you get more defensive rebounds, you earn the right to play in transition that way. And so I don’t think that we’ve changed the standards. It takes what it takes to be a championship team, and it’s just a matter of what kinds of habits we’re willing to earn.”

Interesting phrasing. On teams I’ve been around – and teams I was on, as a very modestly talented high school JV player long, long ago – the question “Do you want to run” usually meant that not shaping up quickly on the practice floor meant running sprints, and lots of them.

Maybe she’s used it in that sense, too, given that she noted her biggest challenge coaching this team is “creating a sense of discomfort when we are below the standard, when the game doesn’t provide that discomfort.”

But that voluntary extra work in the gym sends this message: The players care, mightily, about meeting that standard. With that attitude, and a team that has both great ambition and the wherewithal to achieve its goals, such admonishment shouldn’t be necessary that often.

jalexander@scng.com

Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine

Ria.city
Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "2 февраля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...






Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "2 февраля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...


Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "2 февраля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...

Read also

Transportation Sec Sean Duffy says FAA systems are 'antiquated,' calls for more air traffic controllers

Iconic grocery shop loved by A-List celebs and royalty shuts flagship store after 53 years

Luke Littler crashes OUT of Darts World Masters after shock quarter-finals defeat against world No7 Jonny Clayton

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Christopher Dean fights back tears as Dancing On Ice pays emotional tribute to US plane crash victims

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

‘So terrible even Pep’s disappointed’ – Fans react to Havertz’s shocking sitter miss after Man City’s kamikaze defending



Sports today


Новости тенниса
Екатерина Александрова

Екатерина Александрова вышла в полуфинал турнира в Линце, где сыграет с Каролиной Муховой



Спорт в России и мире
Москва

Перешедший из ЦСКА в «Спартак» вратарь назвал Москву лучшим городом в мире



All sports news today





Sports in Russia today

Москва

В бесснежной Туле прошел фестиваль по регби на снегу


Новости России

Game News

Пиксельный платформер Aidan in Danger вернёт вас во времена ретро-консолей


Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this

Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine

Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this

Russian.city

Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this


Москва

Президент Кубы Мигель Диас-Канель Бермудес и Дмитрий Новиков провели встречу в Гаване


Губернаторы России
Алексей Сёмин

Какие новые модели автомобилей «Москвич» доступны?


За 7 лет ЗМК выпустил 400 миллионов детских продуктов

5,8 тыс. семей Московского региона направлены выплаты из материнского капитала

РЖД берут вагоны в оборот. Лесу и металлу подадут состав. Порты ищут пути отстоя. Пульс ж/д за неделю в зеркале прессы

В 2024 году 283,4 тысячи женщин и новорожденных Московского региона получили услуги по родовым сертификатам


Рокер на пенсии: как выглядит звезда 90-х Найк Борзов

В Большом театре пройдет вечер в честь 100-летия со дня рождения Майи Плисецкой

Портреты Бетховена и да Винчи могут попасть на новые купюры евро

Певица Татьяна Овсиенко рассказала о проблемах со здоровьем


Рублёв: мой уровень далёк от уровня топ-10

Монпелье (ATP). 1/2 финала. Оже-Альяссим сыграет с де Йонгом, Рублев – с Ковачевичем

Елена Рыбакина сделала неожиданное признание о себе

Организаторы турнира WTA в ОАЭ извинились за ошибку с гражданством Касаткиной


Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this


Собянин: около полутора тысяч остановочных павильонов установят в Москве в этом году

Ткани премиум-класса – обзор ассортимента «Тканель»

История бренда Jaecoo

Ткани премиум-класса – обзор ассортимента «Тканель»


Определены лауреаты премии Росгвардии в области литературы и искусства, науки и техники

Дистрибьюция Музыки в России. Сайт дистрибьюции музыки.

«Я возвращаюсь на третий урок и пахну Москва-рекой!» Репер ST рассказал Анфисе Чеховой как провалился под лёд в детстве 

История бренда Jaecoo


Обещать — не значит родиться: власти не обсуждают льготную ипотеку за намерение завести детей

«Спартак» взял вратаря и отдал форварда, а у Эмери — топ-игроки! Трансферы и слухи дня

Российский дзюдоист выиграл золото на турнире «Большого шлема» в Париже

Нагрузка увеличится: грядут большие перемены в ЕГЭ - правила меняются


Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this


Путин в России и мире
Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this



Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this



Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this



Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this

Персональные новости Russian.city
Александр Буйнов

Буйнов опроверг ТАСС информацию об ухудшении самочувствия на фоне онкологии



News Every Day

‘So terrible even Pep’s disappointed’ – Fans react to Havertz’s shocking sitter miss after Man City’s kamikaze defending




Friends of Today24

Музыкальные новости

Персональные новости