By Shashwat Chauhan
January 28, 2025 – 8:54 AM PST
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(Reuters) – Short sellers of artificial intelligence-related stocks raked in bumper profits after the smashing debut of low-cost AI models from China’s DeepSeek spooked Wall Street, with bets against Nvidia yielding record profits totaling more than $6 billion.
Traders betting against AI-darling Nvidia (NVDA.O) earned profits of about $6.6 billion – the biggest single-day move ever on the stock – according to data analytics firm Ortex.
Nvidia saw $593 billion wiped off its market value on Monday, in the biggest single-session loss ever for any company, after Chinese startup DeepSeek launched AI models that it said are at par or better than industry-leading models in the United States, at a fraction of the cost.
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