DeepSeek, a Chinese startup, has launched low-cost AI models that rival those of US companies, triggering significant reactions from tech investors and geopolitical analysts. This disruption echoes China's strategy of entering and transforming various industries. The company claims to have achieved computational efficiency, launching models at a fraction of the cost of competitors like OpenAI. This has implies potential challenges for American firms, particularly Nvidia, leading to steep declines in stock valuations amid fears of increased competition.
DeepSeek's debut of its latest AI models has flipped over the table, with venture capitalist Marc Andreessen hailing it as a "Sputnik moment" on X.
Investors suddenly realized Nvidia might not sell as many chips in the coming years as they expected, leading to a drastic cut in its market value by almost $600 billion.
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