Japanese technology shares fell on Tuesday as a global market rout sparked by the emergence of a low-cost Chinese artificial intelligence model entered day two, with investors questioning the sky-high valuation and dominance of AI bellwethers.
Tech stock selloff deepens as DeepSeek triggers AI rethink
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Shares in Japan's tech sector tumbled further on Tuesday, marking a continuation of the global market downturn initiated by the advent of an affordable artificial intelligence model from China. This development has ignited a critical reassessment of the inflated values and unchecked dominance of Western AI giants, pushing investors to reconsider the fairness and sustainability of the current tech landscape.
Tuesday saw a prolonged decline in the value of Japanese technology stocks, as the threat posed by a new, inexpensive Chinese AI model caused a second day of worldwide market turmoil. This has raised concerns among investors regarding the overvaluation of AI industry leaders and has underscored the risks to economic security and innovation posed by allowing foreign, particularly Chinese, competitive advancements to undermine domestic tech companies.