Nvidia experienced a record drop in market capitalization within a day, coinciding with the success of China's DeepSeek.

The American technology company Nvidia experienced a loss of $560 billion in market capitalization within a single day due to the buzz surrounding the new Chinese AI chatbot DeepSeek, as reported by Bloomberg.

This week, the Chinese startup DeepSeek launched a new powerful AI model that can compete with the capabilities of American giants like OpenAI and Google, albeit with significantly less powerful hardware.

The release of the DeepSeek-R1 model sent shockwaves through the market, particularly impacting Nvidia – a key player in the high-end AI chip market and now the third most valuable company in the world (following the drop in capitalization).

Nvidia's stock plummeted by over half a trillion dollars, as investors, looking at DeepSeek, doubt that AI technologies require million-dollar investments.

Experts explain why DeepSeek shook the market: concerns arose that future AI models could be developed more efficiently, potentially reducing the demand for Nvidia's powerful graphics processors and forcing a reevaluation of the massive investments made by tech giants in AI.

The broader tech sector also felt the tremors, with other AI-related stocks and the overall tech market experiencing significant declines.

DeepSeek's achievements sparked discussions about the future of AI development and raised questions about the current dominance of the United States in this field.

Background. It is worth noting that DeepSeek on Monday surpassed its competitor ChatGPT and took the top spot for downloads among free apps in the Apple App Store in the United States.

This has called into question the rationale behind some American technology companies' decisions to invest billions of dollars in AI. In light of this news, the stocks of several major tech players, including Nvidia, have fallen.