The AI industry is set to lose more than $1 trillion — yes, that’s with a “t” — after an open-source Chinese AI company called DeepSeek’s ChatGPT competitor skyrocketed in popularity over the weekend, sparking fears that the massive hype surrounding the tech was unwarranted. It’s been a bloodbath for Silicon Valley, with AI chipmaker Nvidia wiping out over half a trillion in market value alone, possibly the biggest one-day market loss for a single company in history. Axios called DeepSeek’s rise a potential “extinction-level event for venture capital firms that went all-in on foundational model companies.” It’s also a spectacular black eye for newly-minted president Donald Trump, who hugely leaned into the AI industry — and specifically the enormous datacenter investments that are now in freefall — during the first week of his second term. One of the first things Trump did was to proudly announce a massive $500 billion AI infrastructure project, dubbed Stargate, involving the likes of OpenAI, Japanese investment group SoftBank, and the software giant Oracle. The idea is to have the companies commit $100 billion combined — with the goal of raising a total of $500 billion over the next four years — to build unfathomably powerful new datacenters to power their buzzy industry. But considering Nvidia has now wiped out more than even that in a matter of hours today, the bet’s currently looking shaky. Investors have long balked at the sheer amount of money AI companies say they need to train these AI models,…Trump Embraced AI and It Exploded Spectacularly in His Face