Chinese AI causes Silicon Valley stocks to tumble
28 February 2025
News
Chinese AI company DeepSeek recently released its AI model that caused shockwaves to ripple through the US tech community. Tech investor Marc Andreeson calls it “AI’s Sputnik moment”, referring to how Russia won the race against the USA when they launched their Sputnik satellite in 1957. Many stocks took a downward spike with Nvidia being the hardest hit losing 16,9% after one day’s trading.
This release comes hot on the heels of various US tech giants pledging to invest up to $500 billion in building AI infrastructure. US President Trump called it “the largest AI infrastructure project by far in history” that would keep the future of AI technology in the US. This now looks doubtful with the introduction of DeepSeek, a system with the same performance, but at a fraction of the cost that the US is spending.
DeepSeek is powered by the open source DeepSeek-V3 model, which its researchers claim was trained for around $6m. This comes on the back of US sanctions of AI technology to China. To continue their work without a supply of advanced chips from the US, Chinese researchers collaborated with each other, which has resulted in AI models that require far less computing power than used by existing models. When used for tasks in mathematics, coding, and natural language reasoning, DeepSeek has performance on par with OpenAI’s latest model.
Other companies hit hard by this news were Broadcom (-17,4%), Microsoft (-2,1%), Alphabet (-4%), ASML (-7%), and Siemens Energy (-20%).
Further reading:
Webinar – How to develop intelligence edge IoT devices
News
Join Quectel’s expert-led webinar, with a speaker from Qualcomm Technologies, to learn more about how to plan, test and deploy successful IoT devices drawing on the unique advantages of intelligence at the edge.
Read more...
SAIMC training at AATF 2025
News
The SAIMC will deliver a powerful series of training sessions and technical workshops during AATF 2025, providing engineers, technologists, and technicians with the tools they need to professionally register, stay compliant, and lead industrial innovation.
Read more...
Webinar – Discover the ST BrightSense ecosystem
News
This webinar is for camera systems developers who need effective, ready-to-use solutions to keep pace with edge AI vision technologies and the rise of new applications spanning factory automation, robotics and drones, healthcare, traffic and security, sports and entertainment, and personal electronics.
Read more...
Altron celebrates 60th birthday with a call to rebuild Johannesburg
Altron Arrow
News
Altron is celebrating its 60th birthday by honouring Johannesburg’s heritage and encouraging business, government and civil society to come together and respond to our President’s call to rebuild Johannesburg.
Read more...
Electronic News Digest
News
A brief synopsis of current global news relating to the electronic engineering fields with regards to company finances, general company news, and engineering technologies.
Read more...
Jemstech to produce PCB assemblies for Kamstrup
Jemstech
News
Jemstech is pleased to announce that they have successfully concluded a supplier agreement with Kamstrup A/S in Denmark, a leading supplier of intelligent metering solutions in the global market.
Read more...
New appointments at Hiconnex
Hiconnex
News
Hiconnex, a leading provider of electronic components and solutions, has announced key appointments to support its continued growth and commitments to its clients.
Read more...
FoundriesFactory service more affordable for smaller OEMs
News
Foundries.io has announced a new, tiered pricing scheme which reduces the cost of its highly regarded FoundriesFactory service for OEMs in the development phase of a new edge AI or Linux OS-based product.
Read more...
DMASS 2024 results
News
The semiconductor business faced a severe downturn, with a 31,9% decrease compared to 2023 and a 30,3% drop in Q4 2024 compared to the same period last year.
Read more...
Using satellite comms to end copper theft
News
According to Transnet COO Solly Letsoalo, the scourge of copper theft could be a thing of the past by eliminating the use of copper cabling and switching to a satellite communication system.
Read more...
printer friendly version