Bloomberg: DeepSeek triggers concerns in the U.S. tech industry, Nasdaq futures plummet

On January 27, according to Bloomberg, due to concerns that China's DeepSeek artificial intelligence model may disrupt the tech market, U.S. stock index futures plummeted in early Asian trading on Monday.

As of 10:12 a.m. Hong Kong time, S&P 500 futures fell by as much as 1%, and Nasdaq 100 futures fell by as much as 1.9%. Last week, DeepSeek released an upgraded version of its AI model and claimed it could rival OpenAI's technology.

Over the weekend, reports suggested that this product runs on lower-performance chips at a lower cost, which has raised questions about the dominance of American tech companies like Nvidia. Nirgunan Tiruchelvam, director of consumer and internet at Aletheia Capital said that DeepSeek products seriously contradict the argument that investing huge capital and operating costs is the most appropriate way to deal with AI trends. It makes people doubt about investing large resources in artificial intelligence.