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3mo ago

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 powerful AI models came despite US sanctions that limited semiconductor accessibility in China.
China-based DeepSeek has quickly gained a huge following worldwide, but the service comes with censorship.
This photo illustration shows the DeepSeek app on a mobile phone in Beijing on January 27, 2025. Chinese firm DeepSeek's artificial intelligence chatbot has soared to the top of the Apple Store's download charts, stunning industry insiders and analysts with its ability to match its US competitors. (Photo by GREG BAKER / AFP) (Photo by GREG BAKER/AFP via Getty Images)
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Overview

  • 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.