AI Wake-Up Call for US Tech Amidst Nvidia Loss

Donald Trump has called China's new AI model, DeepSeek, a "wake-up call" for the US tech sector following Nvidia's massive market value loss of nearly $600 billion.

DeepSeek's emergence triggered a sharp decline in AI-focused company stocks. Nvidia, a leading GPU provider crucial for AI model operation, suffered the most significant blow, experiencing a 16.86% share drop—a record on Wall Street. Microsoft, Meta Platforms, Alphabet (Google's parent company), and Dell Technologies also saw declines ranging from 2.1% to 8.7%.

Although this claim has faced scrutiny, DeepSeek has raised questions about the billions invested by American tech firms in AI, unsettling investors. The model's popularity surged, reaching the top of US free app download charts amid growing discussions regarding its performance.

Sheldon Fernandez, co-founder of DarwinAI, commented to CBC News, stating that DeepSeek "performs as well as, and in some cases better than, leading Silicon Valley models, but with a fraction of the resources." He further highlighted the disruption to business models, noting the potential for free access to features previously requiring substantial monthly subscriptions.

President Trump offered a more optimistic perspective, suggesting DeepSeek could be beneficial for the US by reducing development costs while potentially achieving similar results. He emphasized the US's continued AI dominance.

Despite DeepSeek's impact, Nvidia remains a multi-trillion dollar company. The company's upcoming RTX 5090 and RTX 5080 GPU releases are highly anticipated, with consumers demonstrating significant enthusiasm.