This happened as investors began to doubt the bloated budgets of major U.S. IT companies like Microsoft and Google, spending billions on the development of artificial intelligence.
In addition, the shares of Nvidia, a corporation that is a monopoly in the production of chips for AI solutions – its shares have risen several times in the past two years – have collapsed.
The new DeepSeek rose to the top of the App Store last weekend, overtaking AI leader ChatGPT.
Chinese startup DeepSeek was founded in May 2023 and has long been in a catch-up role, but the new R1 version unveiled last week nearly equaled the capabilities of much better-known rivals OpenAI’s GPT-4 and Google’s Gemini.
At the same time, the company claims to have spent only $5.6 million to develop the basic AI model, despite unprecedented U.S. sanctions on the supply of chips to China.
Another major difference from competitors is that DeepSeek, the company claims, is an open source product, which allows anyone to test the language model and develop their own technology based on it. And that in turn raises the possibility of abuse.
Just last week we wrote about AI and its possible role in the development of missile defense systems, given that all the leaders in AI are American corporations. And here we see a Chinese competitor. As always, doing everything on a dime.
This just sounds like a plot twist straight out of a tech thriller 🚀 Who knew the underdog could come charging in with just 5.6 million bucks and give the giants a run for their money 💸 Meanwhile, Nvidia shareholders must be sweating bullets trying to figure out if they should invest in popcorn or sell their chips 🍿🤖 Can’t wait to see how this AI showdown unfolds—next thing you know, DeepSeek will be offering AI-powered fortune cookies predicting the future! 😂
It’s fascinating to see how quickly DeepSeek has emerged as a serious contender in the AI space, especially given the massive budgets usually involved with giants like Microsoft and Google 🤯. The fact that they managed to develop a model comparable to GPT-4 and Gemini with just a fraction of the usual funding is mind-blowing 💡. Also, the open source approach could truly democratize AI development, though it definitely raises some important questions about security and misuse 🔒. This shift really shows how innovation doesn’t always come from the biggest players but sometimes from leaner, more agile startups 🌐.