Nvidia CEO loses USD 20.8 bn as China's AI DeepSeek poses new competition
Nvidia's stock price plummeted 17 per cent from USD 141 per share to USD 118.5 per share, causing Jensen Huang, the company's CEO and largest individual shareholder, to lose USD 20.8 billion in net worth.
ANI
Jan 28, 2025 10:45 IST
New Delhi [India], January 28 (ANI): In a significant shakeup, the release of DeepSeek AI, a cutting-edge product from a Chinese start-up, has sent shockwaves through the global AI and semiconductor markets.
The announcement triggered a massive selloff in Nvidia shares, resulting in a record USD 589 billion loss in market capitalization.
Nvidia's stock price plummeted 17 per cent from USD 141 per share to USD 118.5 per share, causing Jensen Huang, the company's CEO and largest individual shareholder, to lose USD 20.8 billion in net worth.
According to Forbes, Huang's fortune dropped from USD 124.4 billion to USD 103.7 billion, pushing him from the 10th spot to the 17th position on the real-time billionaires list.
The sell-off in Nvidia shares marked a broader trend as AI and semiconductor stocks globally faced heavy selling pressure. Inventure Growth and Securities attributed the downturn to fears of rising competition from DeepSeek AI.
Analysts attribute the decline to fears of rising competition from DeepSeek AI, which boasts advanced AI models that are more cost-efficient and utilize less sophisticated chips.
The emergence of DeepSeek AI has highlighted the growing competition in the AI sector, with companies worldwide scrambling to develop innovative technologies.
US President Donald Trump on Monday weighed in on the disruption caused by DeepSeek AI, stating, "Hopefully, the release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win."
As the global AI landscape continues to evolve, the challenge posed by DeepSeek AI underscores the need for Nvidia and other industry leaders to prioritize ongoing advancements to maintain their market position.
The event has sparked discussions about the implications of rising competition from cost-effective, cutting-edge technologies developed by Chinese firms. (ANI)
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