The newly developed Chinese AI model DeepSeek has caused significant financial market fluctuations, impacting both tech stocks and cryptocurrencies.
Impact on Stock Market
Tech stocks, including giants like Apple, Nvidia, and Tesla, experienced substantial losses. Nvidia, in particular, suffered a nearly 17% drop amidst news of DeepSeek.
Cryptocurrency Market Response
The cryptocurrency market also felt the impact of the new model, with Bitcoin and Ether dropping by 6% and 7% respectively. This highlights cryptocurrencies' vulnerability to broader market changes and their correlation with traditional financial assets.
Future of AI and Crypto Influence
Being an open-source model, DeepSeek could further AI development. However, privacy and political issues may affect its distribution. Experts such as Paul Howard suggest minimal impact on cryptocurrency.
The sudden emergence of DeepSeek surprised markets; however, in the long run, it may encourage the development of more accessible and efficient AI solutions.
