The market cap of the AI agent industry has experienced a significant decline since January, falling from $10.37 billion to around $5.7 billion or $9.74 billion, depending on the source. This drop in market cap is attributed to the emergence of a cheaper and more efficient Chinese AI model called DeepSeek, which has caused waves in the industry and impacted tech stocks. AI agents in the crypto industry, such as AI16Z, GOAT, and VIRTUALS, have also seen declines in value over the past 30 days. The US government, under Donald Trump, expressed plans to invest heavily in AI and crypto, with the government-backed AI project Stargate set to spend $500 billion over the next four years. The power of AI is believed to have the potential to fundamentally change societal contracts and is associated with high costs for research, hardware, and electricity. DeepSeek has gained popularity, surpassing OpenAI in search terms and becoming the number one app on Apple's App Store.



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