DeepSeek's Rapid Rise Shakes Global AI Landscape

The Chinese AI model's low-cost claims and security concerns trigger market turbulence, regulatory scrutiny, and geopolitical tensions.

DeepSeek, a Chinese AI model, claims to rival OpenAI's GPT-4 at a fraction of the cost, sparking skepticism about its $6 million development claim.
The model's emergence caused a significant selloff in global tech markets, with the Nasdaq Composite dropping 3.1% and Nvidia losing over $590 billion in market cap.
Several countries, including Italy, Taiwan, and Australia, have banned DeepSeek over data security and privacy concerns, while the U.S. considers similar measures.
Critics question DeepSeek's reliance on synthetic data and potential gray-market hardware acquisitions, casting doubt on its innovation claims.
The rise of DeepSeek highlights growing tensions in the global AI race, with U.S. firms focusing on advanced AI infrastructure and AGI development to maintain leadership.