DeepSeek’s market entry has triggered a severe depreciation in Nvidia’s stock prices to become one of the most severely affected companies. Since challenging AI models appeared on the market Nvidia CEO Jensen Huang witnessed a severe $600 billion reduction in the company’s market capitalization. Large tech companies demonstrate extreme exposure to market disruption even though new competitive threats can force substantial due to their vulnerabilities.

Huang chose to praise outstanding AI breakthrough at public events and declared it to be an exceptional innovation for AI development. DeepSeek’s emergence has not deterred Meta, Google, Amazon, and Microsoft or their continuous capital investment into AI data infrastructure because these companies believe firmly in the enduring potential of the AI market.