

The Chinese, as always, are in their own style. I mean, the whole world has long had a stereotype of a Chinese product, one that does not work very well, is not always reliable, but is very cheap and affordable for the mass consumer. This has been the case for decades, but recently, Chinese manufacturers have learned a lot, especially in terms of production culture, and are mass-producing very high-quality consumer and industrial goods that, although sometimes cheaper than their European, Japanese or American counterparts, are no longer sold for a penny, as they used to be.This is a quick review from Ivan Kompan, Edinburgh Business School analyst.
This weekend revealed that China can still surprise the world with its ability to produce efficiently and competitively. This time, it’s about AI—long considered the realm of U.S. tech giants like Apple, Tesla, and Nvidia.
For years, the “Magnificent Seven” dominated AI, with plans to invest $1.5 trillion in the technology by 2027. These companies justified sky-high stock prices, like Tesla’s $180 price-to-earnings ratio, on promises of AI-driven future profits. Investors eagerly followed the trend, convinced it wasn’t another bubble.
But on Sunday, Chinese startup DeepSeek disrupted the narrative by unveiling an AI model rivaling the best chatbots for just a fraction of the cost. Their spending, reportedly in the millions, contrasts sharply with the billions poured into projects like Trump’s $500 billion Stargate initiative. The news shocked the investment world, making expensive AI ventures seem overpriced.
Markets reacted immediately. Futures for tech stocks plummeted, with Nvidia and ASML among the hardest hit. Nvidia alone lost $400 billion in market value by Monday morning. Tech investors collectively faced losses in the trillions.
Does this signal the bursting of the AI bubble, akin to the 2000 dot-com crash? It’s too early to tell. If DeepSeek’s breakthrough proves legitimate and its costs as low as claimed, the AI landscape—and the stock market—could be in for a seismic shift. And Trump’s disappointment? Likely immeasurable.
*And finally, we would like to remind you that the information you have just listened to is not an investment advisory. Remember – investments in the stock market are always tied up with financial risks. So be careful and cautious.