Market volatility wipes out $138bn from Musk, Bezos, Zuckerberg, and Ellison’s wealth

Elon Musk and three other billionaires have lost a combined $138 billion as tech stocks decline. At the beginning of the year, the world’s wealthiest individuals saw rapid gains, with their fortunes increasing by approximately $10 billion daily in January. However, market conditions have shifted, leading to a significant decline in their net worths.

Musk, Jeff Bezos, Mark Zuckerberg, and Larry Ellison have seen their wealth decrease as market volatility rises. The downturn is largely attributed to the emergence of DeepSeek, a Chinese artificial intelligence firm that has disrupted the industry with its latest model, R1. DeepSeek’s innovation has intensified competition, affecting major tech players such as Nvidia and Meta.

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The Bloomberg Billionaires Index shows that Musk’s net worth has dropped from $433 billion at the beginning of February to $349 billion. Zuckerberg’s fortune has declined from $243 billion to $232 billion. Ellison, Oracle’s chairman, has lost nearly $9 billion, pushing him from the third to the fifth-richest person in the world. The situation has raised concerns among analysts and investors about whether this is a short-term setback or a sign of a prolonged market correction.

Nvidia has experienced the most severe impact. The company’s market capitalisation has dropped by $600 billion due to investor reactions to DeepSeek’s rapid growth. Nvidia CEO Jensen Huang’s personal wealth has fallen by more than $20 billion, bringing his net worth to $103 billion. The ripple effect has extended to other major tech executives. Ellison has recorded a $27.6 billion loss after Oracle shares declined by 14%. Michael Dell, founder of Dell Technologies, has lost $12.4 billion. Google co-founder Larry Page has seen a $6.3 billion drop, and Google investor Andreas von Bechtolsheim has suffered a $5.4 billion decline.

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DeepSeek’s rise has led to a massive selloff in AI stocks, affecting Silicon Valley’s wealthiest figures. Musk has experienced the most significant loss, with his net worth decreasing by $90 billion. Zuckerberg has lost approximately $11 billion. The financial downturn follows a period of strong growth in January when the world’s top billionaires collectively gained $314 billion.

Despite the losses, industry leaders remain optimistic about the future of AI and technology innovation. Huang acknowledged DeepSeek’s impact, describing its open-source AI model as a significant advancement that has gained global attention. He referred to the company’s innovation as world-class and noted the enthusiasm it has generated within the industry.

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DeepSeek’s emergence has created intense competition, particularly in the AI sector, challenging established firms like OpenAI, which developed ChatGPT. While DeepSeek focuses on reasoning and decision-making AI, ChatGPT has gained widespread use in applications such as customer service and content creation. OpenAI’s influence continues to grow, particularly through integrations with Microsoft products.

The situation highlights the evolving nature of the AI industry and the market’s sensitivity to disruptive innovations. While DeepSeek’s rise has led to significant losses for some of the world’s richest individuals, it has also underscored the increasing importance of AI advancements in shaping the technology landscape.