Apple, Meta and Amazon were the only three “magnificent seven” tech stocks that withstood a wide market rout amid panic over Chinese artificial intelligence firm DeepSeek’s latest model, which supposedly rivals OpenAI’s ChatGPT.
Apple (APPL) closed up 3.18% on Jan. 27, while Meta Platforms (META) gained 1.91%. Amazon also just crept over the line, closing up 0.24% on the day.
Meanwhile, shares in chip maker Nvidia Corp (NVDA) closed down nearly 17% on Jan. 27, wiping out almost $600 billion in value — the largest one-day value drop in US stock market history.
Shares in Google’s parent company, Alphabet Inc (GOOG), were also hit hard, falling 4%, while Microsoft Corp (MSFT) and Tesla Inc (TSLA) fell 2.14% and 2.32%, respectively, according to TradingView.
Bitcoin also dropped 3.6% to a low of $98,930 on Jan. 27, while the broader crypto market had fallen 2% over the last 24 hours, CoinGecko data shows. BTC has since recovered to around $101,500.
Andreessen Horowitz co-founder Marc Andreessen described DeepSeek’s R-1 launch as “AI’s Sputnik moment” — referencing the first-ever satellite put in orbit by the Soviet Union in the 1950s, which accelerated the space race.
DeepSeek claimed its AI chatbot was built with $6 million in funding, contrasting massively with the US private $500 billion AI infrastructure investment announced last week by President Donald Trump.
However, some investment analysts, including Investing.com’s Jesse Cohen remain skeptical over the $6 million figure.
Others in the AI industry praised DeepSeek for adopting an open-source model at a time when many of the most notable AI chatbots are closed-sourced.
Some AI platforms like the Erik Voorhees-founded Venice AI, have already integrated DeepSeek’s latest model.
DeepSeek, however, said on Jan. 27 that it would temporarily limit registrations claiming there were large-scale malicious attacks on its software.
DeepSeek was founded by Liang Wenfeng in the southeastern Chinese city of Hangzhou in May 2023.
