 |
| Chinese DeepSeek AI |
Chinese AI app DeepSeek has rattled U.S. tech markets and raised fresh concerns about America’s leadership in artificial intelligence.
Over the weekend, DeepSeek-R1, the app’s chatbot, became the top free download on Apple’s U.S. App Store.
According to reports, it had triggered a historic market rout by Monday, January 27.
The major AI chipmaker Nvidia's shares fell 17%, depleting its market worth by around $600 billion, the worst one-day loss in American stock history.
As investors struggled with concerns about America's hegemony in AI innovation, other tech companies also fell.
DeepSeek’s developers claim their model cost just $5.6 million to create, a fraction of the billions spent by U.S. AI leaders like OpenAI and Google.
This claim has stunned Silicon Valley, raising questions about the app’s funding and the transparency of its development.
“This is AI’s Sputnik moment,” venture capitalist Marc Andreessen said, referring to the shock of the Soviet Union’s space race milestone.
 |
| QR code of the DeepSeek App |
Tech analyst Gene Munster called DeepSeek a “black eye for U.S. tech,” while acknowledging its potential impact on the sector.
DeepSeek powers Nvidia’s H800 chips and open-source software, evading U.S. restrictions on advanced chip exports to China.
Reports also suggest its founder’s hedge fund had been stockpiling GPUs for a number of years now.
The app’s debut comes just days after U.S. leaders announced a $500 billion AI infrastructure plan.
DeepSeek’s success, however, questions assumptions about the resources needed for AI development and has accelerated calls to reassess U.S. policy on tech exports.
OpenAI’s Sam Altman described DeepSeek as “impressive,” adding that competition invigorates progress.
Yet the app’s sudden rise marks a turning point, fueling a global AI race where the U.S. no longer holds all the cards.
0 Comments