Business | Bubble trouble

DeepSeek sends a shockwave through markets

A cheap Chinese language model has investors in Silicon Valley asking questions

Deepseek logo creating havoc amongst  digital and tech symbols on a bold red background.
Illustration: Rose Wong

In a flash, euphoria over artificial intelligence (AI) has turned to panic. Since early trading began on January 27th the market value of Nvidia, an AI chipmaking champion, has slumped by 17% at the time of writing. The share prices of Alphabet, Amazon and Microsoft—America’s cloud-computing triumvirate—have fallen by 3%, 1% and 3%, respectively. All told, American tech companies have shed around $1trn in value.

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