U.S stock market update: China's AI Push Puts Pressure on Wall street's technology firm ?

U.S stock market update: China's AI Push Puts Pressure on Wall street's technology firm ?

On January 27 Monday, over fear that a Chinese company might pose a challenge to the large US corporations that have benefited from the AI craze. What it took to establish Google and Open AI is hundreds of millions of dollars. It only took six months and less than $6 million, according to Deepseek.

After that the Nvidia Corp. down -15.40%.

Nasdaq composite fell -3.14%.

Dow Jones Industrial Average (DJI) down -0.18%.

S&P 500 down -1.92%.

Also the sharpest losses were suffered by big tech stocks, which have been the market's biggest players.

The rapid rule of DeepSeek led to questions regarding the hundreds of billions of dollars that Microsoft Corp., Meta Platforms Inc., and Alphabet Inc. have planned to invest on the technology.

Due to its lower cost and use of less powerful CPUs, the recently released Al model is now regarded as a serious competitor to those from OpenAl and Meta Platforms Inc.

With a smaller team and a smaller budget, they can now expand on the current model, making it much simpler to get to the front of the race.