Nassim Taleb, who wrote the book The Black Swan about unpredictable events, warned that Nvidia’s record stock collapse from fears over DeepSeek’s AI portends even worse market carnage to come and shows how fragile the economy has become.
His comments came just after Nvidia’s 17% dive erased $589 billion in market cap, representing the biggest-ever drop for a US company, which also dragged down the Nasdaq more than 3%.
That came after DeepSeek’s development of cutting-edge AI at a fraction of the cost that rivals like OpenAI and Google are spending raised doubts about the hundreds of billions of dollars that are slated for investment in the sector and elsewhere.
Since OpenAI released ChatGPT in November 2022, launching the current AI boom, Nvidia stock has soared more than 700% as demand for its chips have exploded. In the process, it has raised alarms that the overall stock market rally has grown too dependent on Nvidia and handful of other tech giants.
Source: FORTUNE
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