European equity markets traded down sharply Monday at the beginning of a new trading week, as the rapid success and popularity of a somewhat unknown, low cost China-based AI solution called DeepSeek was calling into question the (many) billions of dollars being poured into the AI sector.
DeepSeek – whose AI Assistant has quickly become the most downloaded app on the Apple App Store – launched its a free, open-source large-language model less than a month ago in late December. The company claims that its AI Assistant took only two months, and less than $6 million to build, using reduced-capability chips from Nvidia called H800s.
Speaking of Nvidia, it was leading a fairly steep decline in US pre-market trading, with its shares indicating a 12% drop from Friday’s closing price of $142.62. Nvidia – whose stock has more than doubled over the past year – has become one of the main been beneficiaries of…
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