Meet DeepSeek, the Chinese AI that is disrupting the markets

The arrival of DeepSeek AI, a Chinese product, has caused a significant upheaval in global financial markets.

DeepSeek-R1 is an open source reasoning model that introduces a logical chain for processing queries in successive steps, enhancing the deduction and analysis capabilities of AI.

This model, offering high performance, now competes with GPT-4 and challenges the monopoly of American companies such as OpenAI, Nvidia, Microsoft Copilot, XAI, Google Gemini, Anthropic, and Meta.

Microsoft’s shares, developer of the AI Copilot, fell by 15.94 USD (-3.59%) at market opening, while those of Google, creator of the AI Gemini, decreased by 5.05 USD (-2.50%). Alphabet Inc. (GOOGL) also recorded a decrease in its market value of 5.63 USD (-2.81%).

On its side, NVIDIA, known for its advanced AI model optimized for intensive computing due to its cutting-edge GPUs, has experienced a significant drop with a decrease of 20.94 USD (-14.68%).

Overall, the Nasdaq Composite, representing the largest technology companies, recorded a drop of 3.4%, while the Dow Jones Industrial Average experienced a more moderate decline of about 0.4%.

On its side, the S&P 500 dropped by nearly 2%.

This situation perfectly illustrates investors’ concerns about a market weakened by the emergence of a new competitor.

In the middle of the week, volatility continues in the stock markets, particularly affecting the technology sector.

At the opening of the markets this Wednesday, several major American technology companies are experiencing notable variations: Apple (AAPL) is down $1.28 (-0.54%), Microsoft (MSFT) is down $4.99 (-1.12%), and Alphabet (GOOGL) is down $1.10 (-0.56%).

On its side, Amazon (AMZN) shows a slight increase of $0.15 (+0.06%), while Meta (META) decreases by $2.53 (-0.38%) and NVIDIA (NVDA) experiences a significant drop of $4.45 (-3.45%).