The recent emergence of DeepSeek, a Chinese AI startup, has disrupted the U.S. tech industry with its new AI models, V3 and R1, which rival U.S. competitors while costing significantly less to develop. Following the announcement, shares of major corporations like Nvidia, Microsoft, and Google experienced substantial declines, reflecting concerns over the competitive landscape. Although Nvidia remains a leader in AI hardware, DeepSeek's ability to harness older technologies raises questions about the future of U.S. dominance in artificial intelligence amidst rising international competition.
News of DeepSeek has ruled the airwaves over the last couple days following the release of powerful new AI models that appear to represent a paradigm shift in the global AI space.
The firm's new V3 and R1 AI models rival anything developed by US companies in recent years, all while having been trained on a fraction of the cost at around $5.5 million, according to reports.
DeepSeek's success despite contending with older-gen hardware and US sanctions appears to have spooked investors and raised some serious questions.
DeepSeek's new AI models pose a significant challenge to US tech firms, highlighting the competitive dynamics in the global AI landscape.
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