Banking News – Contrary to global expectations, China’s rapid advancements in artificial intelligence (AI) have caused significant financial losses for Western tech companies, amounting to billions of dollars within just 24 hours.

China’s AI chatbot, DeepSeek, has gained massive global popularity, becoming the most downloaded app on Apple’s App Store. This success has debunked the notion that China lags behind Western nations in AI development.

The chatbot, known for its real-time information delivery, has triggered substantial losses for American and European tech firms. The breakthrough has also raised concerns over the production costs and stock value of NVIDIA, a major U.S. semiconductor manufacturer.

Additionally, major Western tech giants, including Microsoft, Meta, Apple, Alphabet, and Amazon, have experienced sharp declines in their stock prices. Reports indicate that U.S. tech stocks dropped by over $100 per share in a single day, with NVIDIA’s market value plummeting by $600 per share.

Experts attribute DeepSeek’s success to China’s cost-efficient AI development compared to the high operational expenses of Western AI firms. The launch of DeepSeek has also led to significant declines on Wall Street.

Reacting to the developments, former U.S. President Donald Trump acknowledged that this serves as a wake-up call for American tech companies. According to CNBC, Trump admitted that DeepSeek’s cost-effective model poses a major challenge to U.S. firms.

Meanwhile, Silicon Valley entrepreneur Marc Andreessen welcomed DeepSeek’s rise, calling it “one of the most remarkable and impactful AI breakthroughs to date.”

Unlike its Western counterparts, DeepSeek was reportedly developed at a fraction of the cost—only $6 million—while American AI firms typically invest billions in development.