Following the launch of DeepSeek’s R1 model, the technology market faced significant instability. Reports indicate that Nvidia’s CEO Jen-Hsun Huang suffered a staggering loss of approximately $20.8 billion in his net worth due to this upheaval.

Nvidia saw a major decline of 17% in its stock value, equating to a loss of $600 million in overall valuation. Forbes highlighted that Huang’s fortune diminished from $124.4 billion to $103.7 billion, dropping his ranking from 10th to 17th among the world’s billionaires.

Fortunately, as of now, Nvidia’s share price appears to have stabilized, leading to a rebound in Huang’s net worth, which is currently estimated at about $108.9 billion, putting him back at the 13th spot.

This situation, however, underscores a crucial point: the loss is not a direct cash out, but rather a theoretical figure based on his stock holdings.

The drop was prompted by fears surrounding the DeepSeek R1 model, perceived as a credible competitor to similar offerings from OpenAI and Meta but purportedly developed at a fraction of the cost.

Additionally, unverified reports suggest Huang may be meeting with President Donald Trump to discuss concerns regarding the competitive landscape between U.S. entities and China’s advancements in AI technologies.

Image of Jen-Hsun Huang
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