DeepSeek's recently launched AI model, R1, has garnered significant attention and raised concerns in the American tech sector due to its low development cost of $5.6 million compared to the billions spent by major US firms. Following its release, tech stocks, particularly NVIDIA's, suffered losses as investors reacted to the competitive pressure posed by DeepSeek R1. Despite its potential, analysts believe that the U.S. remains ahead in AI infrastructure and capabilities, focusing on long-term AGI development while acknowledging the innovation presented by the DeepSeek model.
Investor Marc Andreessen tweeted that 'Deepseek R1 is one of the most amazing and impressive breakthroughs I've ever seen,' highlighting its open-source nature as a gift.
Wedbush analysts noted that while the R1 model is impressive and impactful, US tech companies maintain a superior focus on achieving AGI.
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