admin Chinese startup DeepSeek shook financial markets on Monday by claiming it could create advanced artificial intelligence models using far cheaper semiconductors than previously thought possible.
The announcement sent Nvidia shares, which have soared in recent years due to its role in powering the AI revolution, plummeting by double digits as trading began for the week. Other tech stocks also suffered as investors considered the potential impact of DeepSeek’s emergence on the future of the AI industry.
“This company might not be the ultimate winner, but it’s made many question the model that seemed certain just weeks ago,” said Greg Taylor, chief investment officer at Purpose Investments.
By the afternoon, the S&P 500 had dropped 1.8 per cent, heading for its worst day in over a month. Big Tech bore the brunt, with Nvidia tumbling 17.4 per cent, dragging the Nasdaq composite down 3.5 per cent. Canada’s S&P/TSX composite index also fell nearly one per cent by 2 p.m. Eastern.
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