The attack on the popularity of Chinese Artificial Intelligence (AI) app Deepseeek has caused the sale of major technology companies after acquiring rival chatgpt to become a free app for Apple
NVIDIA, Microsoft and Meta are scheduled to open on Monday and the development knocked prices in Europe.
The app has grown in popularity since its launch, challenging the widely held belief that the US is a leader not found in US firms US firms plan to plan.
It is powered by an open source deep-v3 model, which the researchers say is less than $6m – less than the millions spent by competitors.
But this claim has been made by others in the AI space.
Senseek’s rise comes as the US restricts sales of advanced ai-powered chip technology to China.
To continue their work without the solidity of imported advanced chips, Chinese AI developers shared their work with each other and tried new methods in technology.
This has led to AI models that require more computing power than ever before. It also means that they are more expensive than previously thought, which has the potential to improve the industry.
After the launch of the Deepseek-R1 was launched earlier this month, the company boasts that it “performs on par with the latest models of Chargpt angerai
Silicon Valley Venture Capital and Donald Trump Advisor Marc Andreessen described Deepseek-R1 as “the Sputnik Moment”, a reference to the satellite launched by the Soviet Union in 1957.
At that time, the US was considered something that was caught off-guard by the success of their technological seeds.
Seppseeety’s popularity has spooked the markets. ASML, the maker of chip equipment, saw its price fall by more than 10% while participating in Nokia Energy, which makes hardware related to AI, posted by 21%.
“This idea of a more expensive Chinese version has never been in the forefront, so it has taken the market a little bit by surprise,” said Fiona Cincotta, senior market analyst, senior market analyst at City Index.
“So if you can make this expensive AI model yourself, then that’s going to improve the profitability of competitors, especially given the amount they’re putting in expensive money.”
And Singapore-based Equity Advisor Vey-Sern Ling told the BBC that it is possible to “release the case for investing in the entire AI Supply Chain”.
But the Wall Street banking giant warned that while the Senseek could challenge the top positions of American companies such as Opelai, the challenges faced by the Chinese could hamper their growth.
“We estimate that in the restricted area, access to advanced chips is a benefit,” said its analyst in the report.
Last week, the Consortium of US Tech Firms and foreign investors announced Stargate Project, The company is putting $500bn into AI infrastructure in Texas.
The company was founded in 2023 by Liang Wenfeng in Hangzhou, a city in southeast China.
The 40-year-old, who is gifted with electronics engineering, also founded a deep-funding target fund.
He for reporting He built a shop for NVIDIA A100 CHIPS, now banned from exporting to China. Experts believe this collection – which some estimates put at 50,000 – led him to launch Deepseek, by pairing these cheap, low-cost chips that are still available for import.
Mr Liang was recently seen at a meeting between industry experts and Chinese Premier Li Qiang.
In July 2024 Interview with China AcademyMr Liang said he was surprised by the response to the previous version of his AI model.
“We didn’t expect prices to be such a serious issue,” he said.
“We’re just going at our own pace, calculating costs, and pricing appropriately.”
Additional reporting by Joao Da Silva and Delbail Jordan.
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