In the dim light of the early morning, as the Asia market stirred to life, AI Coins were dealt a crushing blow. The culprit? A Chinese AI startup named DeepSeek, which has stormed the market with models so cheap, they make Silicon Valley’s budgets look like a drunken sailor’s tab. Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), and Filecoin (FIL) all tumbled 8-10%, while the Nasdaq 100 futures plunged 330 points overnight. Ah, the sweet sound of chaos. 🎭
The AI coins market, once a beacon of hope for the tech-savvy investor, has now tanked by 7.66% in the last 24 hours, with the total market cap falling below $44 billion. CoinMarketCap data reveals that top AI coins have collapsed an average of 8-10%. Meanwhile, Bitcoin, ever the drama queen, has dropped to the crucial $100K support level. Is this the end of an era, or just another Tuesday in the crypto world? 🤔
The reason for this upheaval? DeepSeek, the Chinese AI startup that has turned the market on its head with its low-cost infrastructure. Built using chips that cost a fraction of what US companies spend, DeepSeek has sent Nasdaq 100 Futures tumbling over 2% to more than 470 points. But wait—experts from the decentralized finance artificial intelligence (DeFAI) market see this as a golden opportunity. Market analyst Daniele, ever the optimist, believes DeepSeek’s dominance will actually help the AI Coin industry expand. He wrote:
“If you’re selling AI coins due to DeepSeek models being cheap and open source, they are actually very helpful to scale AI Apps to Millions of users with low-entry barrier pricing. Is the best thing that could have happened to the industry.”
DeepSeek’s rise has been nothing short of meteoric. While Silicon Valley tech giants like OpenAI and Anthropic spend over $100 million on computing alone, DeepSeek has achieved comparable or superior performance to GPT-4 and Claude for just $6 million. Former BitMEX CEO Arthur Hayes couldn’t help but question US AI dominance, musing:
“A thot: what if the rise of Deepseek causes global investors to question US exceptionalism. What if they question y they are over weight US tech vs the world and why they are over weight US bonds vs the world?”
As the DeepSeek app tops the Apple Store downloads, US chip stocks have taken a hit. Qualcomm (QCOM), Nvidia (NVDA), Arm (ARM), and Broadcom (AVGO) are down 2-7%, further intensifying the AI coins dip. The Kobeissi Letter tweeted:
Chip Stocks Overnight Reaction to DeepSeek:
1. Arm, $ARM: -5.5%
2. Nvidia, $NVDA: -5.3%
3. Broadcom, $AVGO: -4.9%
4. Super Micro, $SMCI: -4.6%
5. Taiwan Semi, $TSM: -4.5%
6. Micron, $MU: -4.3%
7. Qualcomm, $QCOM: -2.8%
8. AMD, $AMD: -2.5%
9. Intel, $INTC: -2.0%US markets are…
— The Kobeissi Letter (@KobeissiLetter) January 27, 2025
//coingape.com/wp-content/uploads/2025/01/DeepSeek-vs-OpenAI.jpeg”/>
DeepSeek’s swift development highlights the growing challenge to US AI dominance, signaling a shift in the global AI landscape. As the broader crypto market adjusts to these developments, the AI coins market will undoubtedly face more turbulence. But hey, isn’t that what makes life—and investing—interesting? 🎢
Read More
- 6 Best Mechs for Beginners in Mecha Break to Dominate Matches!
- Esil Radiru: The Demon Princess Who Betrayed Her Clan for Jinwoo!
- Unleash Willow’s Power: The Ultimate Build for Reverse: 1999!
- Unlock the Ultimate Armor Sets in Kingdom Come: Deliverance 2!
- How to Reach 80,000M in Dead Rails
- Eiichiro Oda: One Piece Creator Ranks 7th Among Best-Selling Authors Ever
- T PREDICTION. T cryptocurrency
- One Piece 1142 Spoilers: Loki Unleashes Chaos While Holy Knights Strike!
- EUR HUF PREDICTION
- Top 5 Swords in Kingdom Come Deliverance 2
2025-01-27 10:47