💥 DeepSeek Disrupts Big Tech: $1T Wiped Out in a Day

Tuesday’s here, and so are we—with your coffee companion to crunch the numbers and spill the news. Let’s dive into the latest business buzz and a whole lot of AI drama.

🏭 Chinese AI Startup Wipes $1T from US Stocks

DeepSeek’s $6M “reasoning” model flips the script on Big Tech spending.

🚀 DeepSeek, a scrappy Chinese AI startup, just rocked the tech world by releasing a groundbreaking AI model—R1—that rivals OpenAI, Alphabet, and Meta’s most expensive creations. At only $6 million to build (pennies compared to its competitors), the R1 model’s announcement wiped nearly $1 trillion off Nasdaq’s value yesterday.

Here’s the scoop:

• Nasdaq nosedive: Nvidia shares fell 17%, while Alphabet and Microsoft slid by 4% and 2%, respectively.

• Made with less: R1 is powered by less advanced Nvidia chips due to US export restrictions. Despite the limits, DeepSeek outperformed expectations.

• Skeptics arise: While Goldman Sachs applauded the startup’s efficiency, Bernstein analysts labeled the selloff a “Twitter panic,” claiming demand for AI chips could still surge.

💡 Big Picture: DeepSeek’s success shines a spotlight on the innovation coming from smaller players. But will the US tighten the leash on AI chip exports further? Keep your popcorn ready.

☕ The New Era of Starbucks Is Here

“Turn My Swag Back On” is Starbucks’ vibe for 2025.

Starbucks just rolled out a “re-cozy” makeover to 11,000 stores across North America, courtesy of new CEO Brian Niccol’s plan to revive sales. Think baristas with ceramic mugs and a friendlier vibe, but fewer freeloaders.

Here’s what’s brewing:

• Customer coziness: Stay-in customers now get ceramic mugs and free refills (hot or iced coffee/tea only).

• Old perks return: Sharpie-doodled to-go cups and condiment bars are back.

• New restrictions: Bathrooms and free water are now off-limits unless you make a purchase—drawing criticism from baristas and advocates for unhoused people.

🔮 What’s next: Starbucks faces mounting pressure with expected quarterly declines and planned layoffs in March. Can coziness save the day? Stay tuned.

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📰 Other News That Caught Our Eye

• 💵 Interest rates on hold: Analysts predict the Fed will maintain steady rates throughout 2025 amid inflation concerns.

• 🛠️ Steel fight: Activist investor Ancora pushes back against Nippon Steel’s bid for U.S. Steel, questioning the industry’s future.

• 📉 SoFi’s stock slide: Strong Q4 earnings didn’t save SoFi’s shares from a tumble after weak 2025 guidance raised eyebrows.

• 🤖 Meta vs. DeepSeek: Meta is assembling an elite team to study DeepSeek’s AI breakthroughs. Silicon Valley isn’t taking this lightly.

• 🍳 Egg-flation returns: Bird flu sparks egg price hikes, keeping breakfast lovers on edge.

• 📉 Crypto carnage: Bitcoin slid below $100K as DeepSeek’s news sparked a broader sell-off. Mining stocks like Core Scientific dropped 29%.

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📣 Thanks for Cracking Open Cash Nut!

That’s the scoop for today. Got feedback or a great story to share? Drop us a line—we’re all ears!

Catch you tomorrow for another crunchy round of financial updates and business buzz.