Perplexity CEO Aravind Srinivas has purchased more shares in Nvidia following a significant market sell-off triggered by the rise of DeepSeek, a Chinese AI app. This comes after the value of Nvidia plummeted by USD 593 billion, marking a historic crash on 27 January.
In a post on X, Aravind Srinivas revealed that he had increased his investment in Nvidia shares during the market downturn. The CEO of Perplexity, a company in the AI sector, responded to CNBC’s Jim Cramer, who had expressed concerns about the future of Nvidia shares amidst the market turbulence. Cramer had tweeted, “There is no silver lining right now with Nvidia though,” reflecting the widespread unease in the stock market.
On 27 January, the global stock market, particularly US tech stocks, experienced a sharp decline, largely due to the sudden rise of DeepSeek, a low-cost Chinese AI app. DeepSeek, which offers large language models comparable to Meta and OpenAI at a fraction of the cost, has quickly gained traction, overtaking ChatGPT on Apple’s App Store in multiple regions, including the US, UK, Australia, Canada, China and Singapore. The app’s rapid growth has threatened the dominance of major AI players and caused a ripple effect throughout the tech sector.
Nvidia, the leading chip maker, was the hardest hit, suffering a massive 17 per cent drop in value. This led to a staggering USD 593 billion loss in market capitalisation in just one day, marking the largest one-day m-cap loss in Wall Street history, according to LSEG data. Other tech stocks followed suit, with Broadcom Inc. dropping 17.4 per cent, Microsoft losing nearly 2.1 per cent, and Alphabet (Google’s parent company) falling 4.2 per cent. The Nasdaq, heavily reliant on tech stocks, fell by 3.1 per cent, primarily due to Nvidia’s crash.
