DeepSeek, a Chinese startup, has developed a chatbot that competes with major players like OpenAI and Google, using significantly fewer resources. This achievement triggered a significant sell-off in tech stocks, particularly impacting Nvidia’s market value. Analysts suggest DeepSeek exemplifies a shift from dependence on massive computational power to innovative algorithm optimization, indicating a contrasting path in AI development. The success of DeepSeek also raises questions about the effectiveness of U.S. chip export controls aimed at curbing China's technological advancement, highlighting China's drive toward tech self-reliance.
This is, I think, something that has really shown to some degree how much the U.S. was living in a bubble, said Antonia Hmaidi, a senior analyst at the Mercator Institute for China Studies in Berlin.
They're not really following existing models, said Marina Zhang. It's basically based on algorithm optimization, using software to break through the constraints of not enough computational power.
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