DeepSeek to be Number One App By Friday Betting Odds Market

While the upcoming Super Bowl (and opening betting line of Chiefs -2) was getting much of the attention overnight here at Gambling911.com, Monday morning in the financial world is all about DeepSeek.

Huge U.S. technology companies thought to be in the AI driver's seat were getting pummeled after revelations of a little known Chinese startup demonstrated a chatbot that it says rivals versions from OpenAI and Google, and for a fraction of the cost.

DeepSeek is free and open sourced.  You can see the code to determine security.

Stock futures were getting crushed early Monday morning with investors looking at the potential for a $1 trillion wipe out and bubble burst.

"A lot of the folks who own crypto happen to be beneficiaries of these big tech companies", according to Aaron Sorkin of NBC News.

Bitcoin had dropped below the $100,000 mark ahead of the 9:30 am ET hour.

From the Associated Press:

Chipmakers Nvidia and Broadcom both suffered double-digit percentage declines after the exhibit from China’s DeepSeek. Software giant Oracle, a central player in the Trump administration’s recently announced $500 billion AI partnership, tumbled 8%. Microsoft slid 3.8% and Amazon fell 3.3%. Google parent company Alphabet and Facebook parent Meta each lost about 3.5%.

Those companies have had a growing impact on the fate of U.S. markets, which slumped Monday.

Futures for the S&P 500 sank 2.1% before the bell, while futures for the technology-heavy Nasdaq tumbled 3.8%. Futures for the Dow Jones Industrial Average declined 0.7%.

Polymarlet opened a betting market on DeepSeek becoming the top app by Friday with greater than 85 percent believing it will be with nearly $20,000 bet during the overnight hours.

This market will resolve to "Yes" if the DeepSeek iOS app is the #1 app in the United States iPhone Apple App Store for the Top Free Apps category, on January 31, 2025, 12:00 PM ET. Otherwise, this market will resolve to “No”.

The resolution source for this market is information from Apple. 

Analyst Dan Ives of Wedbush Securities said that while the China’s DeepSeek AI technology is impressive, the U.S. tech sector is still far ahead of China with regard to AI infrastructure.

“Launching a competitive (large language) model for consumer use cases is one thing,” Ives wrote in a note to clients. “Launching broader AI infrastructure is a whole other ballgame and nothing with DeepSeek makes us believe anything different.”