Nvidia shares sink as Chinese AI app spooks markets

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Global News Podcast 30 min 25 speakers transcribed
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Podcast Narrator 0:00
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Josh Hartnett 0:35
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Landon Harris 0:53
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Josh Hartnett 1:01
I'm Josh Hartnett. This is F1 Back at Base. Listen wherever you get your podcasts.
Janet Jalil 1:08
This is the Global News Podcast from the BBC World Service. I'm Janet Jalil, and in the early hours of Tuesday, the 28th of January, these are our main stories. U.S. tech shares have fallen sharply on Wall Street in response to Chinese advances in AI, threatening the dominance of big American firms. The United Nations says there's no doubt Rwandan troops are supporting M23 rebels who are seizing the Congolese city of Goma. Holocaust survivors have marked the 80th anniversary of the liberation of the Nazi death camp at Auschwitz.
Podcast Narrator 1:47
Also in this podcast... HMS Agincourt would instead be known as HMS Achilles.
Janet Jalil 1:54
We'll tell you why the changing of the name of a British submarine has caused an outcry. We begin in the world of big tech and artificial intelligence, where the emergence of what's said to be a low-cost AI Chinese chatbot has caused shockwaves. Shares in Western tech giants fell sharply in value on Monday, with the AI chipmaker Nvidia one of the hardest hit. Half a trillion dollars was wiped off its value after a Chinese startup, DeepSeek, stunned its American competitors with the success of its AI app, reportedly made at a fraction of the cost of rivals like ChatGPT. Despite only being launched this month, it's become the top-rated free application on Apple's App Store in the United States.
Janet Jalil 2:47
This is despite the US restricting the sale to China of the advanced chip technology that powers AI. Stephanie Hare is a technology author and explains why this matters to all of us.
Stephanie Prentice 3:00
Right now, we've got really a competition between the two global superpowers, the United States and China, for what is being arguably considered pitched as the battle for the technology of the 21st century. So it will matter for companies. It will matter for productivity. It will matter for growth. So even if you're in the United Kingdom or I'm talking to you from Germany tonight, you might be thinking, what does that have to do with me? Well, these are low growth countries. So everybody is looking for the next big thing that's going to get them some economic growth so that we can pay for everything that we need, education, healthcare, et cetera. Whoever wins the race for AI will define that.
Janet Jalil 3:36
Well, our AI correspondent Mark Cieslak told us more about this new app.
Mark Cieslak 3:41
There's been a lot of discussion about the huge amount of investment in the AI space in the last few years. Microsoft has said that it's going to spend $80 billion on AI infrastructure. And Meta, that's the company that owns Facebook and Instagram, they're saying they're going to spend between $60 and $65 billion on AI infrastructure. Now, that's on things like data centres. These are what's required for AI operations to make the tech actually work. Now... DeepSeek are saying that it's cost them $6 million to train and develop its model.

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