Who’s DeepSeek? The Chinese app that spoilt Nvidia’s party!

Who’s DeepSeek? The Chinese app that spoilt Nvidia’s party!

United States: Nvidia, the AI chip leader, lost over 16% of its value following the rapid rise of DeepSeek, a Chinese AI chatbot that has quickly become the most downloaded free app in the US. DeepSeek, which reportedly developed its technology for a fraction of the cost of rivals, is raising concerns about America’s AI dominance.

This rise has impacted other major tech companies linked to AI, such as Microsoft and Google, as their stock values also fell. In response to overwhelming demand, DeepSeek temporarily limited user registrations, citing “large-scale malicious attacks” on its system.

The chatbot’s claim of being powered by a model developed for around $6 million — far cheaper than rivals like OpenAI — has stirred the industry. DeepSeek, leveraging open-source code and existing technology, represents a challenge to established tech firms, particularly as US restrictions on the sale of advanced AI chips to China push Chinese developers to innovate with more cost-efficient technologies.

The sudden emergence of DeepSeek has caused a shockwave across stock markets, with analysts questioning the future of investments in the AI sector. Some experts warn that while DeepSeek poses a serious challenge to US AI firms, geopolitical restrictions on chip access could limit its growth.

DeepSeek’s founder, Liang Wenfeng, launched the company in 2023 in Hangzhou, China. He built his AI platform with surplus Nvidia chips, which were restricted from export, pairing them with available lower-end chips. This innovation marks a new chapter in the AI race, with DeepSeek’s rise compared to the US’s initial reaction to the Soviet Union’s launch of Sputnik in 1957.”