How is a small Chinese AI company putting big American companies at risk?
2025-01-28 10:56:40
TiranaPost
A small Chinese artificial intelligence lab, Deepseek, stunned the world by revealing the technical recipe for its advanced model, turning its charismatic leader into a national hero.
What is DeepSeek?
Deepseek, founded by hedge fund manager Liang Wenfeng, is a small Chinese AI lab. Last week, the lab revealed a technical recipe for its advanced model, explaining how to build an AI language on a limited budget and have it improve automatically without human supervision.
DeepSeek has attracted the attention of investors as its performance compares favorably with that of rivals META and Open AI.
The startup claims to have used fewer Nvidia chips than its competitors, raising questions about the future of hardware purchases from Silicon Valley.
The success of DeepSeek has shaken the foundations of Silicon Valley over the future of American companies like META and Anthropic.
The Chinese company's chatbot also climbed to the top of the Apple App Store download chart in the US over the weekend.
How have the markets reacted?
Tech stocks fell sharply today as advances from Deepseek cast doubt on whether the U.S. can maintain its lead in AI by spending billions of dollars on chips. Shares in chipmaker Nvidia, one of the biggest beneficiaries of the AI revolution, fell 8%; Microsoft and Meta fell more than 3%.
Trump's reaction
Donald Trump has also raised the alarm. In a media appearance, he stated that the development of DeepSeek should be a wake-up call for American technology companies.
