Nvidia’s stock plummeted 18% due to investor concerns about Chinese AI startup DeepSeek, erasing a record $560 billion from its market capitalization.
The decline had a ripple effect on the market, causing the S&P 500 to fall as much as 2.3% and the Nasdaq 100 to tumble as much as 3.6%.
DeepSeek’s low-cost AI model has sparked concerns that US companies have overspent on AI development, and that the Chinese firm’s approach could disrupt the current AI business model. Gregory Allen, Director of the Wadhwani AI Center at the Center for Strategic and International Studies joins Balance of Power to discuss.
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