Bloomberg: DeepSeek Sparks Concern in U.S. Tech Sector, Nasdaq Futures Tumble

BlockBeats News, January 27th, according to Bloomberg, due to concerns that China's DeepSeek's artificial intelligence model may disrupt the tech market, U.S. stock index futures plummeted in early Asia trading on Monday. As of 10:12 a.m. Hong Kong time, S&P 500 futures fell 1% at one point, while Nasdaq 100 futures dropped 1.9%.

DeepSeek released an upgraded version of its AI model last week, claiming it can rival OpenAI's technology. Over the weekend, reports emerged that the product was running on lower-performance chips at a lower cost, raising questions about the dominance of U.S. tech companies like Nvidia.

Nirgunan Tiruchelvam, Consumer and Internet Lead at Aletheia Capital, stated that DeepSeek's product "seriously challenges the argument that pouring massive amounts of capital and operating expenses in Silicon Valley is the best way to respond to the AI trend. It makes one skeptical about pouring so many resources into AI."