The market capitalization of Artificial Intelligence cryptocurrencies has experienced a notable decline of 10% in the last 24 hours, dropping to $37.4 billion. Top AI coins such as RENDER and VIRTUAL have seen substantial losses, with RENDER and VIRTUAL down by over 13%, while FET and INJ have decreased by 9% and 11% respectively.

This sudden drop in value coincides with the emergence of DeepSeek, a cost-effective AI model developed by High-Flyer, a Chinese quant trading company. Priced at just $6 million, DeepSeek has raised concerns about the sustainability of current AI projects and is challenging the traditional belief that significant funding guarantees success in the AI domain.

The impact of DeepSeek's introduction is reverberating throughout the AI industry, affecting not only artificial intelligence cryptocurrencies but also major companies like NVIDIA, Microsoft, and Meta. Stocks of these companies have experienced pre-market losses, with NVIDIA facing an 11.46% decline, illustrating the uncertainty brought about by this disruptive technology.

Furthermore, the total market capitalization of AI-related cryptocurrencies has decreased by 10.2% to $37.4 billion within the past 24 hours. The majority of top AI coins have suffered losses of at least 9%, except for TAO, which has remained relatively stable with a minimal price change.

The recent depreciation in the value of AI coins, particularly RENDER, VIRTUAL, FET, and INJ, underscores the apprehension surrounding the future prospects of current AI cryptocurrency applications in the wake of DeepSeek's emergence. The industry is now grappling with doubts about the long-term viability of AI-focused crypto projects, even as established players like NVIDIA and OpenAI come under scrutiny regarding their financial sustainability and growth prospects.