In an earth-shaking moment for the global AI race, Chinese firm DeepSeek unveiled its AI chatbot, sending shockwaves through US tech markets. The Nasdaq plunged 3%, erasing $1 trillion in value as investors reeled from the news. Heavyweights like Nvidia and Google took massive hits, with Nvidia losing its crown as America's most valuable company after its shares nosedived by a record-breaking 17%. DeepSeek's secret? Cost-efficient models that outperform industry leaders using downgraded chips, a move that undermines years of US dominance in AI. While some see this as AI's Sputnik moment, others question whether American firms have overinvested in expensive AI infrastructure. This Chinese breakthrough suggests the US may face stiff competition despite sanctions and billion-dollar budgets.
Is this the dawn of a new AI era, or will US tech find a way to reclaim its edge?