Watan-Global financial markets are experiencing unprecedented turmoil following the sudden rise of the Chinese artificial intelligence application “Deep Seek,” which has topped app stores and alarmed investors, particularly in the United States. The concern stems from the app’s low cost and rapid spread, which have had a direct impact on the stocks of major technology companies, most notably Nvidia.
The application, launched on January 20, has demonstrated high competitiveness compared to leading AI platforms such as ChatGPT, offering advanced performance at a significantly lower cost.
This unexpected success led to a 17% decline in Nvidia’s stock, wiping out nearly $600 billion from its market value in a single day—the largest single-day drop in the history of U.S. financial markets. The downturn also pushed the Philadelphia Semiconductor Index down 9.2%, while the Nasdaq recorded a decline of more than 3%, further fueling concerns about the future of U.S. AI companies.
U.S. President Donald Trump did not hide his concerns about the new application, calling it a “wake-up call” and stressing that it should serve as a motivation for American companies to strengthen their AI competitiveness. American concerns extended beyond political statements, as the U.S. Navy issued instructions prohibiting its personnel from using “Deep Seek” under any circumstances, citing security and ethical concerns related to the model’s origin and usage.
As competition between China and the United States in the AI sector intensifies, Deep Seek appears to pose a new challenge to American companies and may influence Washington’s future policies toward Beijing in this critical field. Will U.S. companies be able to keep up with this Chinese breakthrough, or is “Deep Seek” the beginning of a new era of technological dominance for Beijing?
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