DeepSeek's AI Breakthrough Shakes Global Tech Landscape

The Chinese startup's cost-efficient AI model challenges U.S. dominance, triggering market turmoil and national security concerns.

• DeepSeek's R1 model claims comparable performance to leading U.S. AI models at a fraction of the cost, reportedly trained for just $5.6 million using less advanced GPUs.
• The release caused a historic $589 billion market value drop for Nvidia, reflecting fears of reduced demand for high-end AI infrastructure.
• U.S. officials and experts raised national security concerns over DeepSeek's data collection practices and potential ties to the Chinese government.
• The development highlights the growing influence of open-source AI, with DeepSeek leveraging open research to achieve its advancements.
• President Trump called DeepSeek a 'wake-up call,' emphasizing the need for U.S. investment and competitiveness in AI, including a $500 billion infrastructure project.

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