News 
January 27, 2025 
2 min. 
The artificial intelligence (AI) market has faced significant turbulence recently, with leading companies in the sector experiencing steep stock declines. Notably, C3.ai saw a 6% drop in its shares, while BigBear.ai faced an 8% slide. These losses reflect the intensifying competition in the industry and the rapid rise of new players.
DeepSeek’s Rapid Ascent Stuns the Market
Chinese AI startup DeepSeek has emerged as the primary driver of this market reaction. According to App Store data, the company’s app surpassed ChatGPT to become the top-rated free app in the U.S. This milestone came just days after the official release of its DeepSeek-V3 model, which boasts superior inference speed and optimized functionalities.
Moreover, the company garnered global attention by open-sourcing its DeepSeek-R1 model, expanding its developer and user base. However, DeepSeek’s success has also reignited debates about U.S. export restrictions on advanced chips.
The startup leveraged Nvidia’s H800 chips to train its models, demonstrating that U.S. government-imposed barriers may not be as effective as intended. This has raised concerns among investors in established AI companies like OpenAI and other industry leaders.
AI Market in Flux
The stock downturn among AI giants highlights the uncertainties and challenges in the market amid the rise of disruptive competitors. DeepSeek’s meteoric rise, which has shaken global dynamics in just a few weeks, is being closely watched by analysts, investors, and industry players alike. This episode underscores that innovation and adaptability are critical for survival and success in the fiercely competitive tech sector.
