Nvidia’s stock dropped significantly after a new Chinese AI chatbot, DeepSeek, gained unexpected popularity, causing concern in the market.
DeepSeek, which was launched at a much lower cost than competitors, became the most downloaded free app in the US in just a few days.
This sudden rise shocked investors and led to stock drops for several tech companies, including Nvidia, Microsoft, and Google.
DeepSeek’s developers claim they created the AI model for only $6 million, much less than the billions spent by companies like OpenAI.
This has raised concerns about the future of AI and the competitiveness of US companies, especially since the US has restricted the sale of advanced chips to China.
DeepSeek is able to operate with less computing power and lower costs, making it a potential game-changer in the AI industry.
Although some experts are worried about how this could affect AI investments, others believe that Chinese companies may face challenges due to restrictions and limitations on technology access.
Despite these concerns, the rise of DeepSeek has made people question the future of AI and its global impact.
DeepSeek was founded in 2023 by Liang Wenfeng in China, and he used Nvidia chips to build his AI, despite restrictions on exporting these chips to China.
This low-cost AI model has taken the market by surprise, causing many to rethink the AI industry’s direction.
BBC reports that DeepSeek had to limit registrations after a cyberattack, showing the increasing challenges faced by tech companies.
Credit : BBC
https://www.bbc.com/news/articles/c0qw7z2v1pgo