Jensen Huang’s Net Worth Plummets by 20% Amid AI Industry Turmoil

Nvidia CEO Jensen Huang’s net worth experienced a significant decline on Monday, dropping from $121 billion to approximately $100 billion, according to the Bloomberg Billionaires Index. This substantial loss of nearly 20% in his on-paper wealth was triggered by the emergence of Chinese AI startup DeepSeek, which has sent shockwaves through the AI industry.

DeepSeek’s Impact on the Market

DeepSeek’s rise to prominence, particularly with its free chatbot app reaching the top spot on Apple’s US App Store, has raised concerns among investors about the future demand for AI hardware, such as Nvidia’s chips. The startup’s high-performing yet relatively cheaper models have sparked fears that the market for expensive AI infrastructure might be at risk.

Nvidia’s Response

In response to the market’s reaction, a spokesperson for Nvidia praised DeepSeek’s advancements, describing them as an “excellent AI advancement” and a “perfect example” of test-time scaling. This technique, which involves adjusting how a model processes information to improve performance without retraining it on more data, has been highlighted as a key factor in DeepSeek’s success.

Broader Market Effects

Huang’s financial setback is part of a broader trend affecting the tech industry. Oracle co-founder and CTO Larry Ellison also saw a significant decline in his net worth, losing $22.6 billion, or 12%, according to Bloomberg. The world’s 500 richest people collectively lost a staggering $108 billion on Monday.

Political Reactions

President Donald Trump commented on the situation, viewing DeepSeek’s cheaper models as both a “positive” and a “wake-up call” for American tech companies. He emphasized the need for the industry to remain competitive and focused on innovation.

Looking Ahead

As the AI landscape continues to evolve, the impact of startups like DeepSeek on established tech giants and the broader market remains to be seen. The industry’s response to these new developments will likely shape the future of AI technology and its economic implications.