Mumbai, January 28:  Jensen Huang, co-founder of Nvidia, saw his net worth nosedive by a staggering USD 20.1 billion, making him one of the biggest losers among the world's 500 richest individuals. The sharp decline followed a tech-led selloff triggered by the sudden rise of Chinese AI developer DeepSeek, which caused major market indices to plummet. Huang’s wealth, once soaring thanks to the booming AI sector, was severely impacted as investors reevaluated the sustainability of Silicon Valley's capital-heavy approach to AI development.

The unexpected rise of DeepSeek took investors by surprise, wiping out significant wealth among tech billionaires, including Huang. DeepSeek's free DeepSeek R1 chatbot app topped global download charts, challenging Western AI giants like OpenAI, Microsoft, and Meta. Despite spending only USD 5.6 million on development, the app's success highlighted the growing competition to Silicon Valley’s AI narrative. As reported by CNBC-TV18, this sudden shift raised doubts about the dependence on massive capital investments to build the strongest AI models. Nvidia Share Price Plunges Nearly 17%, Tech Stocks Tank As Chinese Competitor DeepSeek Threatens To Upend AI Frenzy.

While Huang and others saw their fortunes shrink, the broader tech sector was severely affected, with a combined loss of USD 94 billion among tech billionaires. Companies that once enjoyed skyrocketing valuations, such as Meta Platforms Inc. and Oracle, faced setbacks. Even as AI hyperscalers like Meta and Microsoft pushed billions into AI development, DeepSeek’s success underlined the potential of a low-cost, high-efficiency model that could rival Silicon Valley’s top investments. CNBC-TV18 reported that this disruption has caused investors to reconsider the financial logic behind large capital outlays for AI. NVIDIA Highlights DeepSeek’s AI Breakthrough With Test Time Scaling.

Huang’s personal wealth, which had increased almost eight-fold in 2023, remains among the biggest winners of the AI boom despite this setback. Other tech billionaires like Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos managed to maintain or grow their fortunes despite the overall market decline. As reported by CNBC-TV18, Zuckerberg saw a USD 4.3 billion increase in his net worth after Meta's stock rebounded, while Bezos also saw modest gains.

(The above story first appeared on LatestLY on Jan 28, 2025 10:37 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).