Artificial Intelligence (AI) is undoubtedly one of the most powerful drivers of the modern economy. As technological advances accumulate at a dizzying pace, great fortunes have been forged based on AI, allowing tech giants like Microsoft, NVIDIA, and Meta to rise to the top of the global wealth rankings.
However, the arrival of DeepSeek, a Chinese startup specialized in AI, has caused an earthquake in the tech industry, leading to a dramatic drop in the market value of some of these companies. This paradigm shift with DeepSeek has left investors and analysts questioning the real value of the AI giants, which has had devastating consequences for the fortunes of their CEOs and founders.
The presentation of DeepSeek, especially with its R1 model, has shaken the stability of some of the largest tech companies in the world. In a single day, the stocks of companies like NVIDIA and Oracle lost billions of dollars, and the net worth of figures like Jensen Huang and Larry Ellison plummeted. In this article from ITD Consulting, we will explore how DeepSeek managed to put the AI industry in check, the impact of its technology, and the reactions of the major market players.
The Impact of DeepSeek on the Market
When we talk about the world’s great fortunes, the relationship with artificial intelligence is evident. Companies like Microsoft, NVIDIA, and Oracle have been at the forefront of AI, creating an ecosystem where cutting-edge technology, specialized chips, and high-performance AI models are fundamental to their success. However, DeepSeek has burst into this landscape with a proposal that is challenging the logic of the sector, leaving many wondering whether the money and resources invested by large corporations have been well spent.
DeepSeek’s R1 model, launched in January 2025, has proven to be a real threat to the most powerful AI models in the industry, such as those developed by OpenAI, Microsoft, and Google. According to DeepSeek, the R1 model is capable of solving complex problems with a computational efficiency notably superior to that of its competitors, and it does so with much more accessible and affordable infrastructure.
In fact, DeepSeek claims that it trained its model using fewer than 2,000 NVIDIA H800 chips, which contrasts sharply with the more than 16,000 chips needed to train similar models from companies like OpenAI and Google. This efficiency in resource usage by DeepSeek has caught the attention of investors, who, however, have been surprised by the drop in stock prices of major tech companies.
The news that DeepSeek has managed to create such an advanced AI with a fraction of the resources of its competitors has generated great uncertainty in the market. As a result of DeepSeek, the stock values of companies like NVIDIA, Microsoft, and Oracle plummeted sharply, leading to a combined loss of more than $108 billion in a single day, according to estimates from Fortune.
This drastic decrease in value has shaken the fortunes of some of the most prominent tech leaders, causing many to question the viability of traditional AI development models in the face of DeepSeek's presence.
The Case of NVIDIA and the Fall of Jensen Huang
One of the names most affected by this disruption is that of Jensen Huang, the founder and CEO of NVIDIA, one of the most influential companies in the AI sector. For years, NVIDIA has dominated the AI chip market, particularly with its line of GPUs, which are essential for training the most advanced models.
However, the recent success of DeepSeek has exposed the limitations of NVIDIA’s business model. The impact of DeepSeek was immediate: the company’s market value plummeted, losing $400 billion, which also directly affected Huang’s personal fortune. In just one day, his net worth dropped by $20.1 billion, a 20% reduction of his total wealth.
The blow was double for Huang, who also faced the news that DeepSeek had managed to create such a competitive model without using NVIDIA’s most advanced chips, which could pose a direct threat to the company. The issue of infrastructure is critical here, as DeepSeek has demonstrated that it is possible to train advanced AI models using limited resources, challenging the conventions that NVIDIA and other companies had established for years.
The loss of value of NVIDIA reflects a crisis of confidence in the market, which is no longer as certain about the long-term viability of expensive and computationally intensive AI models. As DeepSeek’s developments continue to gain traction, investors are beginning to wonder if the multimillion-dollar investments from NVIDIA, Microsoft, and other big companies are truly aligned with the future of technology. The situation also raises questions about the sustainability of traditional AI models, which rely on expensive and constantly expanding infrastructure.
Collateral Damage: Oracle and Other Tech Giants
Another major player affected by DeepSeek’s earthquake was Oracle, the multinational tech company founded by Larry Ellison. Oracle has been one of the key players in the development of AI infrastructures, providing solutions for large data centers. However, the arrival of DeepSeek has exposed some of the vulnerabilities of its model, especially in terms of computational efficiency.
The market’s reaction to DeepSeek’s disruption was not limited to NVIDIA. Oracle’s valuation also plummeted, resulting in a significant loss for Ellison. While the percentage drop in his wealth was smaller compared to Huang’s, at 12%, the absolute impact was considerable, reaching $22.6 billion in losses.
This devaluation in the face of DeepSeek reflects the fear of investors about the new competition, which is using much cheaper and more efficient resources to achieve comparable results. Furthermore, the drop in the stock prices of Oracle and NVIDIA had collateral effects on other global financial indices.
The Nasdaq, for example, lost 3.1%, while the S&P 500 also suffered a 1.5% drop. These declines affected a number of investors and entrepreneurs outside the direct circle of AI, such as Michael Dell and Changpeng "CZ" Zhao, who also saw their fortunes shrink as the stock values of major tech companies plummeted.
On the other hand, not only the big tech companies were affected by the launch of DeepSeek. Many investors who had committed to tech companies also saw the value of their portfolios decrease.
Globally, the drop in the stock prices of AI giants has had direct repercussions on the behavior of stock markets. This has created a climate of distrust that affects both the biggest players and startups and small companies in the tech sector.
The Winners: How Bernard Arnault and Mark Zuckerberg Came Out Unscathed?
Despite the chaos caused by DeepSeek, some market players managed to weather the storm without suffering major losses, and even made money. The biggest beneficiary was Bernard Arnault, president of LVMH, who saw his fortune grow by $5 billion while tech stocks were falling. Arnault, known for his ability to manage his luxury empire with unmatched shrewdness, proved to be a master of stock market risk management.
On the other hand, Mark Zuckerberg, the founder of Meta, also skillfully navigated this earthquake. Despite being a key player in the development of AI, Zuckerberg not only came out unscathed from the crisis but also saw his fortune grow by $4.2 billion, showing his ability to adapt to the new market conditions.
Unlike others, who bet on traditional technologies, Zuckerberg and his team have managed to strategically position themselves in the new wave of AI, a clear example of how smart decisions can lead to prosperity even in times of uncertainty.
The case of Jeff Bezos also deserves mention. Although his gain was more modest, with an increase of $519 million, Bezos has managed to maintain his position in the market as one of the leading investors in AI, allowing him to weather the storm without major losses. This prudent and strategic approach has been key to maintaining his position in the competitive world of technology.
The impact of DeepSeek on these magnates shows how the great fortunes of tech sector leaders depend not only on business decisions but also on the ability to adapt to new threats and opportunities. While some were dragged down by the collapse of tech stocks with DeepSeek, others have managed to capitalize on the situation in their favor, investing in safer areas or even diversifying their investments to mitigate risk.
This shift in the dynamics of tech fortunes highlights the importance of a long-term vision and effective risk management in such a volatile environment as AI.
The AI Industry: An Uncertain Future
The rise of DeepSeek has introduced a new paradigm in the artificial intelligence industry. The approach of the Chinese company DeepSeek has challenged the fundamental premises on which current AI infrastructure is built. DeepSeek’s ability to create highly efficient models with minimal resources raises the question of whether the large investments made by companies like NVIDIA, Microsoft, and Oracle in data centers and specialized chips have truly been necessary.
DeepSeek’s computational efficiency, combined with the ability to train AI models at a fraction of the cost of its competitors, could lead to a radical change in the way companies develop and deploy artificial intelligence. As trade sanctions and restrictions on access to advanced technologies continue to affect Chinese companies, it is expected that DeepSeek and other emerging AI startups will continue to find ways to navigate these obstacles.
The recent history of the company DeepSeek shows how, despite the restrictions, Chinese developers have managed to innovate with ingenuity and shrewdness, creating competitive AI with fewer resources. This challenges the belief that large Western tech corporations have an irreversible advantage in the development of advanced artificial intelligence.
The future of Artificial Intelligence (AI) is uncertain, and this uncertainty reflects the dynamic and changing nature of the industry. The major tech players, who have been the leaders of the sector for years, are now facing complex challenges that test both their ability to stay at the forefront in terms of technological efficiency and their ability to compete in an increasingly saturated market.
In this context, the emergence of new startups like DeepSeek highlights that AI dominance is not reserved exclusively for a few giants, but that innovative ideas and disruptive approaches can change the rules of the game.
This new wave of competition is forcing established companies to rethink their strategies. In the case of large corporations like NVIDIA, Microsoft, and Oracle, the arrival of more efficient and accessible AI models has called into question the viability of their costly infrastructures and their traditional approach to AI development.
The challenges are now greater than ever: maintaining relevance in the face of emerging solutions that are not only more economical but also capable of offering competitive performance. This disruption with DeepSeek could mark the beginning of a new era where size and tradition are not the only determining factors in the success of a tech company.
The challenge for the industry’s leading companies will be how to adapt and evolve to remain relevant. Innovation cannot stop; the tech giants must find ways to integrate the new ideas and models that are emerging. This will require a strategic vision and the ability to evolve in a rapidly moving market.
Instead of viewing competition as a threat, the most renowned companies will have to learn from the new approaches and adapt them to improve their own products and services. Only those who remain flexible and open to change will survive in this highly competitive environment.
What is clear is that the transformation of the AI industry is in full swing and shows no signs of slowing down. The disruption of DeepSeek and other similar initiatives is forcing the industry to reconsider its fundamental assumptions and to look more closely at the innovative alternatives emerging outside the radar of the big names.
While some players feel threatened by the change, others, such as Bernard Arnault and Mark Zuckerberg, have managed to adapt to this new landscape and capitalize on the turbulence to strengthen their positions. Ultimately, the future of AI will be defined not only by the tech giants but by a new generation of innovators who are changing the course of technological history.
If you want to learn more about DeepSeek and how to use this technology, write to us at [email protected]. Stay at the forefront of technology with the expert advice of the dedicated team at ITD Consulting.
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