[Music] [Music] alphabet Amazon Apple meta Microsoft Nvidia Tesla together these Tech Giants are called The Magnificent 7even and why they called Magnificent not because of their massive valuations or their investments in artificial intelligence they are called Magnificent because of their dominance in the stock market these seven stocks account for over onethird of the total value of S&P 500 S&P 500 is an index that tracks the top 500 companies in America and these seven companies that I just mentioned rule it they shape the fortunes of the market and when they stumble the market trembles we saw that yesterday the stock markets were bleeding $1 trillion were wiped off in a single day all thanks to a Chinese AI company called Deep seek we’ve been telling you about it on this show deep seek recently unveiled its AI models its AI Chad Bots and they’re making waves a world over giving American AI giants like Chad GPT and gini run for their money the Chinese models are costeffective just a few million dollars in Investments they were also trained on less Advanced chips yet they’re as good as their Western counterparts and this has left the markets in a frenzy if you looked at the Magnificent 7 yesterday you could have mistaken them for a Chinese flag that’s how red they were the Biggest Loser star chipmaker Nvidia it had its worst day since the year 2020 Nvidia shares plunged 177% in yesterday’s trade it wiped out $600 billion in market value 600 billion in just one day it’s the biggest fall in US Stock Market history the other Tech Titans weren’t spared either alphabet shed $100 billion Microsoft Lo lost $7 billion all in all it was Manic Monday for America’s Tech Giants and the losses spilled over the world’s richest collectively lost $18 billion leading this route was Jensen hang the CEO of Nvidia his fortune took a $20 billion hit You’ think he wouldn’t be a fan of deep seek but surprisingly Hanan had a different take he called it and I’m quoting an excellent advancement and it’s easy to see why deep seek AI models were trained using Nvidia chips they Wen the latest and the greatest but they were still Nvidia chips and here’s the twist a cheaper AI model means more AI demand yeah I think the worry is that they in theory were able to do this without nvidia’s latest chips um as well as the model it’s a strong model but the reality is is that it doesn’t change the position of US tech Nvidia Microsoft and others relative to AI Revolution and I do believe it’s a huge overreaction that we’re seeing in stocks uh on this deep seek sell off so this does not spell Doom for NVIDIA but the same can’t be said for open AI That’s the maker of Chad GPT open AI CEO Sam Alman prays deep seek let me quote from what he said deep seek are1 is an impressive model particularly around what they’re able to deliver for the price we will obviously deliver much better models so Sam Alman says open AI can do better but can they really again look at the numbers deep seek trained its models for just $6 million compare that to open AI it is burning through $5 billion a year so the Chinese version comes for a fraction of the cost plus it is free for users while Chad GPT comes with a hefty price tag so for consumers the choice is quite obvious it is a no-brainer really millions are flocking to deep sea making it the highest rated free app in the United States but with great Fame comes great risk and deep sea clared it the hard way yesterday the app was hit by a Cyber attack it was so bad that the company had to limit registrations they investigated it for 2 hours and called it a large scale malicious attack deep seek has not given any more information on the attack the timing of course is a bit suspicious so the internet wasted no time in deciding who is the culprit they believe the United States did it [Music] [Music] well but conspiracy theories aside the rise of deep seek is a reminder Innovation does not always have to come with a billion doll price tag yes the Magnificent 7 still dominate the market but they’re not Invincible yesterday’s selloff was a sign of things to come perhaps that the next big revolution may not come from Silicon