Winning Bizness Desk
Mumbai.China has created a major stir in the world of artificial intelligence with the launch of its DeepSeek AI module. On Monday, as news broke across American and global stock markets about the incredibly low-cost development of this AI module, tech companies' shares tumbled, and the net worth of several billionaires took a significant hit. The ripple effects of this development have been profound, with the combined wealth of the world’s top 500 billionaires shrinking by $108 billion (approximately ₹9.34 lakh crore). The biggest losses were borne by Oracle Corporation’s co-founder Larry Ellison and Nvidia’s co-founder Jensen Huang.
Nvidia's Jensen Huang Loses $20 Billion
The billionaires most affected by China’s move are those with stakes in AI-based technologies. For Jensen Huang, co-founder of Nvidia, which manufactures chips essential for AI development, Monday turned into a financial nightmare. The shockingly low cost of China’s AI module sent Nvidia’s stock crashing, wiping $20.1 billion from Huang’s net worth in a single day. His fortune now stands at $101 billion.
Oracle's Larry Ellison Suffers Massive Blow
Oracle Corporation’s co-founder Larry Ellison faced the biggest individual loss. His net worth plummeted by $22.6 billion in a day, leaving him with $186 billion. This massive drop highlights the impact of DeepSeek AI’s disruptive pricing on global tech giants.
Elon Musk and Others Also Hit Hard
According to the Bloomberg Billionaire Index, the fallout extended beyond Huang and Ellison. Dell Inc.’s Michael Dell saw his net worth shrink by $13 billion. Binance Holdings’ co-founder Changpeng Zhao lost $12.1 billion, and Elon Musk’s fortune dipped by $6.7 billion. Google co-founders Larry Page and Sergey Brin also recorded losses of $6.3 billion and $5.9 billion, respectively.
AI Billionaires Lose 85% of Total Decline
In total, DeepSeek AI caused a $108 billion loss in the wealth of the world’s 500 billionaires. A staggering $94 billion of this decline—approximately 85%—came from billionaires connected to the tech sector. The impact was also felt on the stock market, with the Nasdaq Composite Index dropping 3.1% and the S&P 500 Index falling 1.5% on Monday.
DeepSeek AI: Revolutionary and Cost-Effective
DeepSeek AI’s disruptive potential lies in its cost. While companies like OpenAI, Microsoft, and Google spent years and billions of dollars to develop their AI models, DeepSeek claims to have built its AI module in just two months at a cost of only $6 million.
China’s innovation has not only raised eyebrows but also demonstrated how a low-cost breakthrough can shake the foundations of the global tech and financial ecosystems. The launch of DeepSeek AI is a wake-up call for global tech giants and investors alike.
