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The US market dipped amid the release of Chinese firm DeepSeek’s latest AI model, which can supposedly perform as well as ChatGPT for a fraction of the cost.
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Apple, Meta and Amazon were the only three “magnificent seven” tech stocks that withstood a wide market rout amid panic over Chinese artificial intelligence firm DeepSeek’s latest model, which supposedly rivals OpenAI’s ChatGPT.
Apple (APPL) closed up 3.18% on Jan. 27, while Meta Platforms (META) gained 1.91%. Amazon also just crept over the line, closing up 0.24% on the day.
Meanwhile, shares in chip maker Nvidia Corp (NVDA) closed down nearly 17% on Jan. 27, wiping out almost $600 billion in value — the largest one-day value drop in US stock market history.
Shares in Google’s parent company, Alphabet Inc (GOOG), were also hit hard, falling 4%, while Microsoft Corp (MSFT) and Tesla Inc (TSLA) fell 2.14% and 2.32%, respectively, according to TradingView.
Stock heatmap of the largest US equities. Source: TradingView
Bitcoin (BTC) also dropped 3.6% to a low of $98,930 on Jan. 27, while the broader crypto market had fallen 2% over the last 24 hours, CoinGecko data shows. BTC has since recovered to around $101,500.
DeepSeek’s latest AI model R-1 was behind the tech stock drop after it was found to complete tasks in maths, coding and natural language reasoning as well as or better than models from market leader OpenAI — all while apparently being made at a fraction of the cost.
This article first appeared at Cointelegraph.com News
