The 500 richest people in the world, led by NVDia Corp’s co-founder Jensen Huang, jointly lost a $ 108 billion on Monday, as Chinese AI developer was tied to a take-leg celloff for Deepsake.
Arabs whose fate is associated with artificial intelligence was the greatest loser: Huang saw his fate by $ 20.1 billion, 20% decline, while Oracle Corp’s co-founder Larry Ellison’s loss of $ 22.6 billion is fully bigger Was, but represented only 12%. According to the Bloomberg Billion Ayers Index, his fate. Dale Inc.’s Michael Dale lost $ 13 billion, and the co-founder of Binenns Holdings Limited, Changpeng “CZ” shaved $ 12.1 billion.
Tech -sector Titans as a group evaporated $ 94 billion money – about 85%of the total decline of the Bloomberg index. The NASDAQ composite index fell 3.1%, and S&P 500 fell 1.5%.
Hangzo-based Deepsak is developing AI model from 2023, but the company first came on the radar of several Western investors at the end of this week, as it is the free Dipsec R1 chatbot app at the top of the download chart worldwide. So many new users piled up in the lampsk, which struggled to keep the app online, causing outage to suffer and forced users with Chinese phone numbers to restrict signs.
Deepsek’s dark-horses entry into the AI ​​race, which says that the cost of just $ 5.6 million to develop, is a challenge for the story of Silicon Valley that the strongest model requires large-scale capital expenses required to develop the strongest model Is. It gave a serious blow to billionaires, whose fate is associated with the Western AI supply chain which is the largest driver of the equity market in the last two years.
Similar playbook
Increased evaluation for so -called AI hypersscalers – meta platform ink, alphabet ink. And including Microsoft Corp – has generated Arabs for its owners for its owners as OpenAII unveiled chat in November 2022. These companies have operated on the same for most similar parts. Playbook: Spend a huge amount to develop and run the AI ​​system by depositing the top-of-the-line semiconductors and the energy supply required to run.
Prominent speaker at meta connect event
Mark Zuckerberg
Meta CEO Mark Zuckerberg on Friday announced that the company plans to spend $ 60 billion to $ 65 billion on projects related to AI this year, above the estimates of Wall Street. According to the Bloomberg Intelligence Report, capital expenditure in all major technical firms is at the speed of reaching $ 200 billion in 2025.
Despite the limited revenue to show all its investments so far, the markets have rewarded American technical shares with a record-high evaluation, which in turn generate historical wealth for their owners. Nvidia stands out as the largest single winner ever of AI Boom, with Huang’s net to almost eight times to $ 121 billion since the beginning of 2023. Zuckerberg’s fate rose by 385% to $ 229 billion in the same period and amazon.com Inc. K Jeff Bezos rose 133% to $ 254 billion.
While Huang and Alison were damaged, the fate of other major technical billionaires became unbearable. Zuckerberg’s net worth ended, which increased by $ 4.3 billion as meta. Bezos’ assets rose to about $ 632 million.
Capital expenditure
The fact is that Deepsek was able to develop a free model, potentially rivals or beats, in which the development costs contestants, including chat and anthropic cloud, which investors silicon at capital expenses Questioned the logic behind the dependence of Valley.
Dipsek did not rely on large investment and top-of-the-line chips to develop its model, one of the main reasons is that Chinese firms have a limited access to powerful GPU, or graphics processing units, most Western companies Trusts since then. The US government established strict export control over the most advanced chips.
In an interview with CNBC last week, Alexandra Wang, CEO of Training Data provider Scale AI, said that despite export control, Deepsek and other Chinese developers are likely to have more information about GPU more than Silicon Valley.
Wang said, “Chinese laboratories have more H100 than people,” Wang said, referring to Nvidia’s top-line AI chip. “My understanding is that there are about 50,000 H100s in Deepsak, which they cannot talk about, of course, because it is against export control which is in America.”
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