Vertiv Holdings LLC, a provider of cooling and energy management solutions for data centers, saw its stock surge 5.25% on Monday in intraday trading. However, this rally was short-lived as the broader energy sector linked to the artificial intelligence (AI) boom was dragged lower by a disruptive announcement from Chinese AI lab DeepSeek.
DeepSeek roiled markets by claiming that it had trained successful AI models much more efficiently than its competitors. This news caused a sell-off in energy stocks that had previously benefited from the rapid development of AI and the associated demand for data center infrastructure.
Vertiv Holdings, along with other energy companies like Constellation Energy, Vistra Energy, Nano Nuclear Energy, and GE Vernova, lost around a fifth of their market value as investors reassessed the potential impact of DeepSeek's AI training breakthrough on the energy sector's growth prospects.