The 500 wealthiest individuals worldwide collectively lost 108 billion dollars. The Bloomberg Billionaires Index shows that billionaires associated with AI are the biggest losers, with Jensen Huang's wealth shrinking by 20.1 billion dollars, a decrease of 20%; Oracle co-founder Larry Ellison saw a reduction of 22.6 billion dollars in his wealth.
DeepSeek has gone crazy, and the "wealthy tycoons" have become the biggest victims.
Overnight, the NASDAQ 100 Index and technology stocks saw a significant decline in Market Cap, with the NASDAQ 100 Index losing nearly 1 trillion USD compared to last Friday, while the combined loss for the 500 richest individuals across the globe led by NVIDIA co-founder Jensen Huang amounted to 108 billion USD. The Bloomberg Billionaires Index shows that billionaires related to AI are the biggest losers, among which:
Jensen Huang's wealth has shrunk by 20.1 billion USD, a decrease of 20%;
Larry Ellison, co-founder of Oracle, saw a decrease of 22.6 billion USD in his wealth, and while this figure is larger in absolute terms, it only represents 12% of his total wealth;
Michael Dell of Dell Technologies lost 13 billion USD;
Changpeng Zhao, co-founder of Binance, suffered a loss of 12.1 billion USD.
Analysis suggests that DeepSeek has burst onto the AI scene like a dark horse, posing a huge challenge to USA tech giants. The company developed an AI model that can compete with the latest products from companies like OpenAI and Meta for just 5.6 million USD. In contrast, Meta CEO Mark Zuckerberg just announced last Friday that he will invest 60-65 billion USD in AI-related projects by 2025.
Vey-Sern Ling, Managing Director of Union Bancaire Privee, stated:
"DeepSeek indicates that it is possible to develop powerful yet lower-cost AI models. This could disrupt the entire investment logic of the AI supply chain, which is currently based on the significant expenditures of a few large-scale companies."
Paul Nolte, a market strategist at Murphy & Sylvest Wealth Management, points out that investors need to view AI companies from a different perspective, and believing that certain companies have monopolized the market and given extremely high valuations is a significant error.
Nevertheless, not all companies are negatively affected. Analysis suggests that some companies expected to use AI rather than develop it, such as Salesforce, Banks, and large retailers, may benefit from DeepSeek's open-source approach as they might deploy AI at a lower cost.
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