China's DeepSeek slows down the AI rally in the markets

The startup DeepSeek has launched a free assistant that reportedly uses cheaper chips and less data. Nasdaq futures plummeted on January 27, 2025, and technology stocks in Japan also fell as the rising popularity of the Chinese AI model shook investor confidence in the profitability of AI and the insatiable demand for high-tech chips in the sector. The Nasdaq-100 futures lost over 3% so far, while the S&P-500 futures dropped nearly 2%. Individual stocks were hit even harder. Nvidia shares traded on the Xetra exchange collapsed by about 10%,...