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DeepSeek Sends Silicon Valley Stocks Into Deep Dive

A newly released AI app from Chinese firm DeepSeek has sent several of the top Silicon Valley stocks into a deep dive Monday.

DeepSeek was released this weekend and has become the No. 1 app downloaded on Apple’s App Store. The company reportedly used only $5 million to create its AI technology, which is a fraction of what’s being spent at OpenAI, Apple and Meta.

NVIDIA and Broadcom have been the biggest beneficiary of the surge in AI technology for demand in their chips used in AI data centers.

Shares in NVIDIA plunged 16.8% and Broadcom was down 17.4%, wiping out over $700 billion of stock market value of these two companies in one day.