Billionaires Lose $108 Billion Amid Tech Selloff Linked to Chinese AI

On January 27, the wealth of the 500 richest individuals worldwide dropped by $108 billion due to a significant decline in technology stocks, primarily triggered by the success of the Chinese AI startup DeepSeek. The company's new chatbot, DeepSeek-R1, has sparked concerns in the West over potential losses in the AI arms race, as it reportedly achieved its development for a mere $5.6 million, contrasting sharply with the hundreds of millions spent by US firms like OpenAI. Nvidia's CEO Jensen Huang was notably impacted, losing over $20 billion as his company’s stock plummeted by 17%, marking the largest single-day loss in market history for any firm. Other tech billionaires, including Jeff Bezos and Larry Ellison, also faced substantial financial losses, raising alarms about the sustainability of Silicon Valley's dominance in AI. Despite the selloff, some analysts view the situation as an overreaction and see potential buying opportunities in the market. The unexpected rise of DeepSeek challenges existing narratives about AI development costs and capabilities, reshaping investor perceptions of the competitive landscape.