The price of Artificial Superintelligence Alliance USD (FET) has experienced a significant decline today, primarily driven by the emergence of DeepSeek, a cost-effective AI model developed by a Chinese AI Lab. DeepSeek's innovative approach has disrupted the US AI sector, which is dominated by expensive, GPU-heavy models. This disruption has led to a sharp decline in the market cap of AI coins, with FET being one of the hardest hit. The model's ability to operate efficiently with fewer GPUs has raised concerns about the future demand for more costly AI models, putting pressure on related cryptocurrencies.
The broader crypto market has also been affected by a selloff in US equity futures, as traders digest the implications of DeepSeek's rise. The market's reaction reflects a shift in sentiment as investors reassess the value of AI-related tokens in light of this new competition. The impact of DeepSeek has been felt across the board, with other AI tokens like NEAR and Render also experiencing significant losses.
FET's price has dropped by 10.09% today, reaching a low of 1.061465.