BANGKOK, Thailand – Global tech stocks have been sent into a tailspin following the launch of DeepSeek, a low-cost AI model by a Chinese startup, causing a ripple effect across financial markets. Gold prices have plummeted, and the Thai baht has weakened significantly.
The price of gold in Thailand dropped by 100 baht this morning, with the price of gold bullion opening at 43,950 baht per baht of gold and gold ornaments at 44,450 baht per baht.
This decline mirrors the trend in the COMEX gold futures market, which fell 40.50 dollars or 1.46% to close at 2,738.4 dollars per ounce. Investors have been offloading gold contracts amid a global tech stock sell-off triggered by the introduction of DeepSeek’s AI model.
Meanwhile, the Thai baht opened at 33.89 baht per dollar, experiencing significant depreciation. The weakening baht is attributed to a rebound in the US dollar as investors seek safe-haven assets in the wake of the decline in US tech stocks. The US tech sector has been under pressure due to concerns over DeepSeek’s AI, the DeepSeek-R1, which is reportedly more cost-effective and efficient than existing AI chips.
The sell-off in tech stocks has been fueled by concerns over the potential impact of DeepSeek’s AI on leading US tech companies.
Investors have been heavily selling tech stocks, with Nvidia shares plunging 16.86%, Microsoft shares declining 2.14%, and Alphabet shares falling 4%. Dell Technologies, a major producer of AI servers, also saw its shares drop by 8.7%.
DeepSeek’s open-source AI model, R1, has been gaining significant traction, offering high performance at a fraction of the cost of traditional AI chips.
Additionally, DeepSeek’s AI Assistant app has become the most downloaded free app on the US Apple App Store, surpassing ChatGPT. These developments have raised concerns about the future of leading US AI technology companies. (TNA)
