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DeepSeek
Chinse firm DeepSeek's AI chatbot left American stock market bleeding. Photo Courtesy: DeepSeek website

DeepSeek: Chinese AI chatbot pushes American stock market into chaos

| @indiablooms | Jan 28, 2025, at 10:20 am

The American technological companies received a jolt and US stocks dropped sharply on Monday following a major advancement made by Chinese artificial intelligence company DeepSeek.

The race in the world of artificial intelligence touched new heights after the launch of the Chinese chatbot that wiped $1tn from the leading US tech index.

Marc Andreessen, a supporter of President Donald Trump and one of the world’s leading tech investors, described DeepSeek as the most amazing and impressive breakthroughs.

"Deepseek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, a profound gift to the world," he wrote on X.

According to media reports, the advancement of the Chinese firm emerged as a surprise after the United States for years cited national security concerns restricting the supply of high-power AI chips to China.

It is assumed that the unknown Chinese firm was able to create a low-cost model with underpowered AI chips.

Leading AI chip supplier Nvidia (NVDA) plunged 17 percent and lost  $588.8 billion in market value on Monday.

Donald Trump reacts

Donald Trump reportedly described DeepSeek as a 'wake-up call' to American tech firms.

"If you could do it cheaper, if you could do it [for] less [and] get to the same end result. I think that's a good thing for us," Trump told reporters on board Air Force One as quoted by BBC.

What did Sam Altman say?

ChatGPT's Sam Altman described DeepSeek, a potential emerging rival of his firm, as an 'impressive model'.

He posted on X, "Deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price."

"We will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases," Altman said.

Altman, considered as one of the pioneers in the field, further wrote on X: "But mostly we are excited to continue to execute on our research roadmap and believe more compute is more important now than ever before to succeed at our mission."

He said it was amazing to see the next generation of AI models emerging in the market.

What is DeepSeek?

DeepSeek is a Chinese artificial intelligence company which is based in Hangzhou.

Its AI-powered Chatbot has emerged as one of the most downloaded free app on Apple since its release in the USA this month.

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