Chinese AI Firm DeepSeek Disrupts Global Tech Landscape

DeepSeek's cost-effective AI model challenges U.S. dominance, triggers market turbulence, and raises privacy concerns.

DeepSeek, a Chinese AI startup, unveiled its R1 model, rivaling U.S. AI leaders like OpenAI at a fraction of the cost, reportedly just $6 million.
The announcement caused a $1 trillion market loss, with Nvidia's valuation dropping by $600 billion due to concerns over reduced demand for its chips.
DeepSeek faces scrutiny over alleged use of Nvidia chips circumventing U.S. export bans, with investigations underway into its procurement methods.
Governments, including those of South Korea, Italy, and the U.S., have raised concerns about DeepSeek's data privacy practices and potential security risks.
The U.S. Navy and other entities have banned the use of DeepSeek's AI tools, citing ethical and privacy concerns, while the company temporarily limited signups after server attacks.