The tech bubble has been behind the success of Nvidia, the world's most profitable company until MicroStrategy came into play. These companies, many of which have AI projects, have caused a huge demand for hardware that with the success of DeepSeek is now in doubt as to whether it will continue to be needed.
As a result, Nvidia is currently down 17% in today's session, and the Nasdaq is down 3.32%. As you may have noticed it has affected the markets in general and also bitcoin and cryptocurrencies which are also trading down today.
DeepSeek surprised some companies in the US and they even built DeepSeek at a much cheaper cost by its founder and I even heard the sophistication is much better than some of its competitors. This shows how great technology is now and developers will be happy to make some adjustments to their journey, so for competitors it is quite surprising. DeepSeek is free to get this is different from some other AI projects that have to be paid to use.
China is starting to become a competitor in terms of technology and even the cost they need to build something is much cheaper than American companies as their competitors. This has made America upset so by creating DeepSeek they are taking anticipatory steps and maybe we will hear other technologies in the future.