Apple Rallies Amid Stock Market Turmoil from DeepSeek's AI Model

The emergence of DeepSeek, a Chinese AI start-up, has sparked significant turmoil in the U.S. stock market, particularly affecting major tech firms like Nvidia, which experienced the largest single-day market cap drop in history. DeepSeek's R1 model boasts capabilities rivaling those of OpenAI's ChatGPT, all developed at a fraction of the cost, leading analysts to question the sustainability of heavy investments in AI by U.S. giants. Notably, Apple has managed to rally amid this downturn, attributed to its more measured approach to AI, relying on third-party data centers rather than extensive in-house infrastructure. Analysts believe that Apple could benefit from DeepSeek's cost-effective AI model, enhancing its product offerings without heavy expenditure. The situation has raised concerns about the future of American dominance in the AI sector, prompting discussions on potential geopolitical ramifications. Industry experts are now urging a reevaluation of the current strategies employed by tech companies in light of this disruptive competition.