Nvidia is facing the biggest single-day market value loss in history, according to a report by Forbes, as the release of an open-source AI model called R1 by China-based DeepSeek has cut more than $600 billion from its valuation, knocking it off its perch as the world's most valuable company.
Nvidia's share price dropped by more than 17% today as DeepSeek's R1 model reportedly displayed capabilities comparable to more well-known names like OpenAI, but at a tiny fraction of the cost. While hundreds of billions of dollars are being poured into AI development in the West, DeepSeek claims it was able to achieve its remarkable results for less than $5.6 million—yes, million, not billion—which it attributed to "our optimized co-design of algorithms, frameworks, and hardware."
