Big Tech Faces Major Threat as DeepSeek’s AI Breakthrough Set to Disrupt the Industry

Big Tech faces a significant challenge from Chinese AI startup DeepSeek. the Nasdaq 100 is projected to decline on Monday as the dominance of U.S.

According to Nigel Green, CEO of the global financial advisory firm deVere Group, DeepSeek’s new AI model is poised to disrupt the tech industry. The model is reportedly more cost-effective and can operate on less advanced chips compared to systems like ChatGPT.

Green comments, “DeepSeek is set to challenge Silicon Valley’s leadership, disrupting the global tech landscape and changing the trajectory of the AI race.”

“The launch of this innovation underscores a historic pivot in the balance of technological power.

US Big Tech, long considered untouchable, is facing credible and intensifying competition from China.

“For investors, this is both a warning and an opportunity—it’s time to rethink traditional tech allocations and seek out new areas of growth.”

DeepSeek’s rapid ascent, with its groundbreaking AI models now dominating Apple’s iPhone download charts, highlights not only innovation but also the growing vulnerabilities in digital ecosystems.

As AI becomes more sophisticated, so do the potential risks, making cybersecurity a vital component of the technological future.

“Cybersecurity stocks are positioned to benefit from this development,” says Nigel Green.

“The rise of AI amplifies the need to protect sensitive data and critical infrastructure. As governments and businesses race to integrate these technologies, they will increasingly turn to cybersecurity providers to safeguard their operations. This sector is no longer just about defense; it’s a growth engine in a world defined by escalating technological rivalry.”

The implications of this AI breakthrough extend far beyond tech, touching on geopolitics and global trade.

For years, the US has relied on tariffs and economic pressure to maintain its dominance. However, DeepSeek’s emergence demonstrates the limits of this approach.

Nigel Green explains, “China’s technological advances, particularly in AI, are eroding the US’s ability to use tariffs as a tool to maintain global supremacy.

“The balance of power is shifting, and Washington must recognize that it can’t always dictate terms to Beijing as it once did. This new reality will have far-reaching consequences for investors and policymakers.”

The rise of DeepSeek highlights the accelerating pace of the “global AI arms race”, with China now firmly establishing itself as a serious competitor. This is not just about a single company; it represents a larger trend that will redefine the global economic landscape.

“This is the clearest signal yet of where the future is heading,” says Nigel Green.

“AI will be the defining technology of our time, and the race to dominate it will shape global markets for decades to come. Investors need to take a global perspective, focusing on emerging technologies, cybersecurity, and markets that are driving innovation.”

Meanwhile, US Big Tech faces mounting pressure as it navigates slowing profit growth. For companies like Alphabet, Meta, and Apple, the emergence of formidable competitors such as DeepSeek raises questions about their ability to sustain the valuations and dominance they’ve enjoyed for so long.

“Traditional tech giants are no longer the guaranteed winners,” adds the deVere Group CEO. “The focus must now shift to sectors and regions that are driving the next wave of innovation. This includes not only AI but also the critical infrastructure needed to support and secure it.”

For global investors, the message is clear: embrace the opportunities presented by this technological shift or risk being left behind.

“The developments we are witnessing today are not isolated—they are the first waves of a seismic change” concludes Nigel Green.