The record was previously held by Wiz Khalifa's "See You Again" featuring Charlie Puth after overtaking five-year record holder "Gangnam Style" by Psy.
'Despacito', the racy Spanish-language global smash hit throbbing with sexual innuendo, racked up another record Friday, supplanting 'See You Again' as the most watched video on YouTube.
Statistics shared by YouTube have revealed that the "Despacito" video has been viewed over 1 million times in over 99 countries, with Morocco providing the most views in the Arab world.
With the huge popularity that "Despacito" has seen in only seven months, it looks like this might be a pretty tough record for future artists to break, but stranger things have happened.
According to YouTube, Latin artists account for more than a third of the top 100 most-viewed musicians of 2017 so far, with the likes of Nicky Jam, Maluma, J Balvin and Ozuna all having notched up more than 1bn views this year alone.
The "Despacito" video, first published in January, is a love letter to Fonsi's native Puerto Rico, showing the beauty of the island and the joy of its people in scenes filled with landscapes and dancing.
Not only that: "Despacito" has also become the first video to reach the milestone of 3bn views on YouTube. We're living in an interesting time right now when people want to divide us. "Thank you so much and I can't wait to see you guys!"
"The music industry has changed, the rules of music have changed and YouTube has a big responsibility [in it] and I recognize it", Yankee said.
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Tyson Foods rose 4.94 percent after the No.1 US meat processor reported better-than-expected quarterly profit and sales. Seven of the 11 major S&P sectors were higher, with the financial index's 0.40 percent rise leading the advancers.