Success of China's DeepSeek costs world's richest man Elon Musk loss of Rs 7.46 lakh crore, Nvidia CEO Jensen Huang, Meta CEO Mark Zuckerberg lose...

The rapid rise of China's AI startup, DeepSeek, has caused significant financial losses for some of the biggest names in the tech world, including Tesla CEO Elon Musk, Nvidia CEO Jensen Huang, and Meta CEO Mark Zuckerberg. The unexpected success of DeepSeek not only disrupted the tech industry but also led to billions of dollars vanishing from the net worth of these influential tech leaders.

Biggest Loser: Elon Musk’s USD 90 Billion Setback

Elon Musk, the world’s richest person, saw his wealth shrink by a staggering USD 90 billion (approximately Rs 7.46 lakh crore) this year, according to a report by Fortune. At the beginning of February, Bloomberg estimated Musk’s net worth at around USD 433 billion (about Rs 35.9 lakh crore), but by the end of the month, his fortune dropped to USD 349 billion (roughly Rs 28.9 lakh crore). This dramatic decline placed him at the top of the list of tech billionaires hit by DeepSeek’s breakout.

Other Tech Leaders Also Hit Hard

Nvidia CEO Jensen Huang and Meta CEO Mark Zuckerberg also experienced substantial losses. Huang's net worth fell by USD 20 billion (approximately Rs 1.66 lakh crore), while Zuckerberg's net worth decreased by USD 11 billion (about Rs 91,000 crore). At the start of February, Zuckerberg's fortune was estimated at USD 243 billion (around Rs 20.2 lakh crore), but it declined to USD 232 billion (roughly Rs 19.3 lakh crore) by the end of the month.

Nvidia’s Historic Market Drop

DeepSeek’s impact was felt most acutely by Nvidia, the leading AI chip-making company. The Chinese startup’s success led to a significant selloff in Nvidia's shares, causing the company’s market value to plummet by USD 600 billion (around Rs 49.8 lakh crore). Bloomberg noted that this was one of the biggest drops in the history of US stock markets.

DeepSeek’s Innovative Edge

DeepSeek gained attention with the launch of a large language model that rivals established players like OpenAI but at a fraction of the cost. Despite the financial hit, Jensen Huang praised DeepSeek’s innovation during Nvidia’s latest earnings call. He described the startup’s advancements as “excellent innovation” and highlighted its contribution to global enthusiasm by open-sourcing a world-class reasoning AI model.

Tech Giants Push Ahead with AI Investments

Even with DeepSeek’s market disruption, Nvidia’s major clients—Meta, Amazon, Google, and Microsoft—remain committed to their AI investments. According to CNBC, these tech giants are collectively planning to invest approximately USD 320 billion (around Rs 26.5 lakh crore) in AI and data center development, signaling their confidence in the continued growth and importance of artificial intelligence.

Conclusion: A Market Shake-Up with Long-Term Impacts

Overall, DeepSeek’s emergence not only wiped out USD 94 billion (about Rs 7.8 lakh crore) from the pockets of top tech billionaires but also reshaped the competitive landscape of the AI industry. As established companies continue to invest heavily in AI, it will be interesting to see how DeepSeek's innovation influences the future of technology and the fortunes of industry leaders.