DeepSeek, a startup from China, has emerged as a serious contender in the AI sector, launching a free AI assistant that has quickly gained popularity, becoming the top-rated app in the U.S. App Store. This rapid ascent has raised concerns among investors, impacting U.S. tech stocks like Nvidia. DeepSeek is noted for developing its AI model at under $6 million, suggesting a potential revolution in AI development costs and challenging the current standards for U.S. tech companies, thereby prompting a reconsideration of industry spending and valuations.
DeepSeek’s model's development cost less than $6 million, challenging the assumption that AI requires exponentially higher investments in money and energy.
If DeepSeek's claims are validated, we may see a significant re-pricing of AI stocks as investors reassess the economic viability of existing technologies.
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