Hangzhou-based AI startup DeepSeek launched its app on Jan. 20, 2025, offering a low-cost large language model for free. Within two days, it became the most downloaded freeware app on the US iOS App Store, surpassing OpenAI’s ChatGPT.

The launch coincided with the World Economic Forum in Davos, drawing attention from global investors.

Bonnie Chan Yiting, CEO of Hong Kong Stock Exchanges and Clearing, noted that it triggered a reassessment of Chinese tech stocks and boosted investor confidence.

This shift in perception had major market implications. Nvidia’s stock plunged 17% on Jan. 27, wiping out US$600 billion in value, as investors questioned US tech valuations against cost-efficient models like DeepSeek’s.

The decline continued with another 4% drop.

These adjustments highlight the growing competitiveness of Chinese AI firms, reshaping global market dynamics and opening new opportunities in the sector.

Recent DeepSeek developments