On the 27th (local time), the New York stock market showed mixed results. This was due to news that the Chinese artificial intelligence (AI) startup DeepSeek launched a service that can compete with the U.S. ChatGPT for a small amount of money.
On that day, the technology-focused Nasdaq index closed at 19,341.83, down 612.47 points (-3.07%) compared to the previous transaction.
This was influenced by the decline in stock prices of big tech companies related to AI. On that day, Nvidia's stock price fell by 16.97% compared to the previous transaction. Broadcom (-17.4%) and Microsoft (-2.14%) also saw declines.
The Standard & Poor's (S&P) 500 index closed at 6,012.28, down 88.96 points (-1.46%) from the previous transaction. The Dow Jones Industrial Average rose by 289.33 points (0.65%) to close at 44,713.58.
Earlier that day, the New York stock market had been showing a downward trend since shortly after opening. The New York Times (NYT) reported that the cost invested by DeepSeek in developing DeepSeek-V3 amounted to $5,576,000 (approximately 7.88 billion won). This is about one-tenth of the training expenses Meta spent on its latest AI model, Llama 3. It is said that Nvidia products were included.