What is DeepSeek? DeepSeek is a Chinese artificial intelligence startup founded in 2023 by Liang Wenfeng. The company has quickly gained attention with its advanced AI models, particularly DeepSeek-R1, which rivals the capabilities of leading AI models like OpenAI’s ChatGPT. DeepSeek’s models are known for their cost-efficiency, achieving high performance with significantly lower development costs.
Impact on US Stocks The release of DeepSeek’s latest AI model has caused a significant stir in the stock market. US tech stocks, particularly those of AI-related companies, have taken a hit. Nvidia, a major player in AI chip manufacturing, saw its shares plummet by 17%, resulting in a loss of nearly $600 billion in market value.
Other tech giants like Microsoft and Google also experienced declines.
A competitor to ChatGPT DeepSeek is considered a close competitor to OpenAI’s ChatGPT. Its models have shown impressive performance in various benchmarks, often matching or surpassing ChatGPT. The cost-effectiveness of DeepSeek’s models has raised questions about the sustainability of high-cost AI development in the US.
Trump’s Statement on DeepSeek President Donald Trump has acknowledged the rise of DeepSeek, calling it a “wake-up call” for American tech companies. He emphasized the need for US industries to focus on innovation and efficiency to remain competitive. Trump also highlighted the potential benefits of DeepSeek’s cost-effective approach, suggesting it could lead to more efficient AI development.
Comparison with ChatGPT While DeepSeek has shown remarkable capabilities, the debate over whether it is better than ChatGPT continues. DeepSeek’s models are praised for their efficiency and cost-effectiveness, but ChatGPT remains a strong contender with its extensive capabilities and established user base. Both models have their strengths, and the competition between them is expected to drive further advancements in AI technology.
Global Availability DeepSeek is available globally and has quickly become one of the most downloaded AI apps in multiple countries, including the US, UK, and China.
Its open-source nature and cost-effective models have contributed to its rapid adoption and popularity.
