DeepSeek's R1 Model Wipes $1 Trillion from U.S. Markets; SoftBank to Invest ¥5.98 Trillion ($40 Billion) in OpenAI

DeepSeek, a Chinese artificial intelligence company, has made headlines with its R1 model, which reportedly wiped $1 trillion from U.S. markets. This development highlights the competitive landscape of AI, where DeepSeek's model challenges established players. In a related move, SoftBank Group announced plans to invest up to ¥5.98 trillion (approximately $40 billion) in OpenAI, further intensifying the competition in the AI sector. SoftBank's investment is part of a broader strategy, having already invested $2.2 billion in OpenAI through its Vision Fund 2 since September. The funding round for OpenAI, which has reached a valuation of $300 billion, has also positively impacted AI-linked cryptocurrencies, with tokens like Worldcoin seeing a 4.5% increase following the news. This surge in investment and valuation underscores the growing importance and potential profitability of AI technologies, as investors navigate a rapidly evolving market.