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The world's 500 richest individuals, led by Nvidia Corp. co-founder Jensen Huang, collectively lost USD 108 billion on Monday following a tech selloff triggered by Chinese AI company DeepSeek. The company’s sudden rise has challenged the dominance of Western AI giants, sending shockwaves through financial markets.

The biggest losses were among billionaires tied to artificial intelligence. Jensen Huang saw his fortune drop by USD 20.1 billion, marking a 20% decline. Oracle co-founder Larry Ellison lost USD 22.6 billion, 12% of his wealth. Other major losses included Dell’s Michael Dell, down USD 13 billion, and Binance co-founder Changpeng Zhao, who lost USD 12.1 billion.

Technology-sector billionaires bore the brunt of the market turmoil, with USD 94 billion in wealth wiped out, accounting for 85% of the Bloomberg Billionaires Index’s decline. The Nasdaq Composite Index dropped by 3.1%, while the S&P 500 fell 1.5%.

DeepSeek's Impact
DeepSeek, a Hangzhou-based company developing AI models since 2023, gained global attention over the weekend when its free chatbot app, DeepSeek R1, topped download charts worldwide. Overwhelmed by demand, the app suffered outages and limited signups to users with Chinese phone numbers.

The company’s success has raised questions about Silicon Valley’s expensive approach to AI. DeepSeek claims it developed its model with just USD 5.6 million, a stark contrast to the billions spent by US tech giants like Meta, Alphabet, and Microsoft. This shift in narrative has shaken investor confidence in the Western AI supply chain, which has driven tech stock growth in recent years.

Capital Spending Under Scrutiny
Meta CEO Mark Zuckerberg recently announced plans to invest up to USD 65 billion in AI projects this year, part of a broader trend among Big Tech to pour billions into AI development. However, DeepSeek’s low-cost model challenges the idea that massive spending is necessary.

Despite US export controls on advanced GPUs, reports suggest DeepSeek may have access to powerful Nvidia chips, such as the H100, further fueling its competitive edge. These developments underline the growing competition in AI and the potential for major shifts in the industry.