The U.S. tech industry is reeling from the emergence of China’s DeepSeek, a powerful new open-source large language model (LLM). Designed at a fraction of the development costs of American LLMs, DeepSeek's capabilities have already outperformed U.S. competitors such as OpenAI and Meta. Shockwaves were felt in the markets, with tech stocks suffering a $1 trillion loss. Known for its affordability and efficiency, DeepSeek is being described as 'AI's Sputnik moment,' reminiscent of a critical turning point in the space race, signaling potential shifts in technological leadership.
DeepSeek's AI model cost less than $6 million to train while U.S. tech giants spent hundreds of millions or billions on theirs.
Andressen stated that DeepSeek is 'AI's Sputnik moment,' likening its launch to the surprise of the Soviet satellite launch.
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