Indian data centre firm Anant Raj plunges 20% as Chinese AI disruptor DeepSeek rattles global tech markets

Shares of real estate and data centre player Anant Raj today nosedived by as much as 20%, hitting an intraday low of ₹534.5 on the BSE. The sharp correction comes amidst the ongoing global sell-off in technology stocks, triggered by investor fears over the emergence of DeepSeek, a disruptive low-cost Chinese artificial intelligence (AI) model.

While primarily a real estate company, Anant Raj has ventured into the technology space through its subsidiary, Anant Raj Cloud, which provides data centre and AI-driven solutions. The company had made headlines in July 2024 when it partnered with Google to develop AI-powered services to boost infrastructure efficiency, productivity, and security.

However, the debut of DeepSeek’s groundbreaking AI assistant has rattled markets worldwide, sending big tech stocks into a tailspin. The Chinese startup claims its model requires less data and operates at a fraction of the cost of existing platforms. Within days, DeepSeek's assistant overtook US rival ChatGPT in downloads on Apple’s App Store.

The ripple effects of DeepSeek’s success have been devastating. Nvidia, the AI chip giant, saw its market value slashed by a whopping $592.7 billion on Monday, while the tech-heavy Nasdaq plummeted 3.1%. Major semiconductor players like Broadcom also faced significant losses.

For Anant Raj, the broader tech turmoil has compounded challenges. Though primarily a real estate-focused company, its pivot to AI and data centres has linked its fortunes to global tech trends. The result? A staggering short-term slide in its stock value.

Anant Raj’s Performance Over Time

Despite a robust 69.24% rise in its stock price over the past year, the company has faced mounting pressures recently. In the last week alone, shares have dropped by 38.29%, with declines of 35.57% over two weeks, 35.14% over the past month, and 21.46% over three months.

The emergence of DeepSeek and its disruptive potential casts a shadow over the global AI ecosystem, leaving companies like Anant Raj grappling with the fallout.