Bloomberg: DeepSeek Fears Proved Unfounded One Year After $589B Nvidia Wipeout

Summary

On the one-year anniversary of the DeepSeek shock — when the Chinese startup erased a record $589 billion from Nvidia's market value in a single day (January 27, 2025) by revealing an AI model comparable to OpenAI and Meta's offerings at a fraction of the cost — Bloomberg published an analysis concluding that the fears proved largely unfounded. Rather than cutting capital expenditures as the market initially feared, AI spending has soared. Key data points: Meta, Microsoft, Amazon, and Alphabet