Mark Zuckerberg's net worth ended up rising, gaining 4.3 billion dollars, following Meta's recovery from an initial decline. In an interview, the CEO of DeepSeek mentioned the existence of about 50,000 H100s that cannot be discussed due to U.S. export restrictions.
The capital expenditure of major tech companies is projected to reach 200 billion dollars by 2025, according to Bloomberg Intelligence. Despite limited revenues, U.S. tech stocks have achieved record valuations and historical gains for their owners.
DeepSeek struggled to handle the influx of new users, leading to service outages and registration restrictions. DeepSeek's entry challenges the traditional notion of the high capital costs needed in Silicon Valley for technological development.
In comparison, Jeff Bezos's wealth increased by 632 million. DeepSeek aims to compete with ChatGPT and Anthropic's Claude. DeepSeek's ability to develop competitive models with minimal investment has led to questioning the prevailing logic in Silicon Valley.
Chinese companies like DeepSeek have achieved this due to U.S. export restrictions on cutting-edge technology. However, some Chinese developers have access to more resources than perceived in the Valley by being beyond the limits of Western knowledge.
Billionaires linked to artificial intelligence suffered significant losses due to the drop in indices resulting from the impact of DeepSeek. The Nasdaq fell by 3.1%, and the S&P 500 by 1.5%. DeepSeek, based in Hangzhou, has been working on AI since 2023.
Although some, like Nvidia's Jensen Huang and Mark Zuckerberg, have seen their fortunes rise, others, like Larry Ellison, have suffered losses. Mark Zuckerberg announced that Meta will significantly invest in artificial intelligence projects, which affected the market and billionaires with interests in the area.
In summary, DeepSeek's incursion has shaken the artificial intelligence landscape and generated an impact on markets and the fortunes of tech magnates.
