Now this brings us to the biggest update from the tech world today. AI chatbot DeepSeek from China has caused havoc in international markets.. The launch of the app named DeepSeek AI is poise to wipe off a trillion dollars in value of shares of some of the world’s biggest tech companies.
What is DeepSeek and Why is it Causing a Tech Stock Rout?
Let’s understand. Now DeepSeek is a Chinese artificial intelligence company. It emerged a couple of years ago from a university startup. It is based in HZA, a city in Southeastern China. The company launch in July of 2023, but its popular AI assistance app was not release until the 10th of January this year.
The Origins of DeepSeek: A University Startup Turned AI Powerhouse
It found Leang Wenfang, who partly fund it using money from a hedge fund that he also launch. The 40-year-old engineering graduate reportedly built up a store of Nvidia A100 chips, which have now export to China. Experts say that these chips, around 50,000 of them, along with cheaper ones that are still available to import, led him to launch DeepSeek.
The Impact of DeepSeek on US Tech Stocks: Billions Wiped Off
But as news of DeepSeek chatbot’s performance spread, hundreds of billions of dollars were wiped off big tech stocks in the US. Now, this is because DeepSeek was reportedly developed for a fraction of the cost of its American rivals like OpenAI’s ChatGPT, Meta’s Llama, and Google’s Gemini. The company has been quietly impressing the AI world for some time now with its low-cost AI and tech innovations.
DeepSeek’s Secret: How It Thrives Without Advanced Chips
The timing of the launch has been significant, as in recent days, US tech companies had pledged billions of dollars more for investment in AI. It was widely thought that large sums of money were needed to build the computing infrastructure to reach AI goals. Now China’s DeepSeek has raised questions over this narrative. Nvidia, a US-based company that makes the powerful chips that run AI, has been hit the worst in the tech market rout.
The Global AI Race: How DeepSeek is Changing the Game
Its stock price plunged 177% over the course of the day. Nvidia has been the most valuable company in the world but fell to third place after Apple and Microsoft on Monday. So should Nvidia and other US tech companies be worried? DeepSeek uses less advanced semiconductor chips than the ones created by Nvidia.
The Geopolitical Implications of DeepSeek’s Success
The success of DeepSeek undercuts the belief that bigger budgets and top-class chips are the only ways of advancing AI. It has created massive uncertainty about the need and future of high-performance chips, and many tech companies are wondering if they now need to buy as many of Nvidia’s tools. DeepSeek’s emergence across the world comes at a time when the US is restricting the sale of advanced chip technology that powers artificial intelligence to its rival China.
What’s Next for AI Innovation in a DeepSeek-Dominated World?
Silicon Valley venture capitalist and Trump adviser Mark Andreeson described DeepSeek’s R1, which claims to perform on par with OpenAI’s 01 model, as AI’s Sputnik moment. He was referring to the Soviet Union satellite launch in 1957, which kicked off the space race. At that time, the US was considered to have been caught off guard by its rival’s achievement, and today, Washington seems to be standing at the same juncture in the world of artificial intelligence.
Tech Investors Spooked by Chinese AI Assistant “DeepSeek”
Something is spooking Tech investors around the world and it’s not this guy—it’s Chinese AI assistant DeepSeek. It’s caused investors to dump stock in US tech companies and is threatening the dominance of American-made AI chipmaker Nvidia, which lost $593 billion in market value, a record one-day loss for any company on Wall Street.
DeepSeek: The Chinese AI Startup Threatening U.S. Tech Dominance
But first, the details: Chinese startup DeepSeek launched a free assistant on January 10. It uses less data than its rivals like ChatGPT or Gemini and apparently works just as well.
Nvidia Faces Historic Loss as DeepSeek Rises in Popularity
Although users say it self-senses when asked about topics that are sensitive in China, like Tianan Square, then its developers revealed just how much money they spent training the AI assistant: $5.5 million. Compare that to the $100 million OpenAI spent training ChatGPT-4.
How DeepSeek’s Revolutionary Approach to AI Is Shaking the Market
The guy behind that app, Sam Altman, has praised the Chinese startup as impressive, and DeepSeek has become the hottest AI download on the App Store. It’s challenging the idea that U.S. firms, with their billions of dollars, are at the forefront of AI.
DeepSeek’s Launch: Why Investors Are Ditching U.S. Tech Stocks
But here’s the thing: DeepSeek claims it didn’t use advanced chips. The developers say they used chips that are less fancy and less powerful than those available to American developers, and they say they used only about 12% of the components their competitors likely used to develop their own tech. Despite tech giants like Sam Altman applauding this new app, others are a bit more skeptical.
How DeepSeek’s Efficient AI Challenges U.S. Billions and Chips
So far, there’s no way to back up the developers’ claims about the cost or components. Now, I couldn’t use DeepSeek to research or write any of this because the site is now so popular it’s been targete by hackers. But if it does stand up to scrutiny, it may have just disrupted the whole AI industry.
