The launch of DeepSeek's R1 model on January 20 disrupted American tech, as it claimed performance that surpassed OpenAI's o1 at a low cost. This led to a steep drop in Nvidia's stock, indicating concerns over reduced chip demand in light of potentially more efficient AI models. Analysts remain skeptical about DeepSeek's credibility and performance, citing doubts about the feasibility of its training costs and model efficacy, while anecdotal evidence from users suggests significant flaws in DeepSeek's outputs, casting doubt on the company's capabilities.
Some analysts express skepticism about DeepSeek's capabilities, stating it seems categorically false that 'China duplicated OpenAI for $5M.' Their performance and training cost are questioned.
DeepSeek's launch caused Nvidia stocks to plummet due to fears that cheaper models could reduce chip demand, marking the largest loss in Wall Street history.
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