Why China’s AI startup DeepSeek is sending shockwaves through global tech
Al Jazeera
Chip giant Nvidia shed nearly $600bn in market value after Chinese AI model cast doubt on supremacy of US tech firms.
DeepSeek, a little-known Chinese startup, has sent shockwaves through the global tech sector with the release of an artificial intelligence (AI) model whose capabilities rival the creations of Google and OpenAI.
DeepSeek-R1’s creator says its model was developed using less advanced, and fewer, computer chips than those employed by tech giants in the United States.
In a research paper released last week, the model’s development team said they had spent less than $6m on computing power to train the model – a fraction of the multibillion-dollar AI budgets enjoyed by US tech giants such as OpenAI, Alphabet and Meta.
Marc Andreessen, one of the most influential tech venture capitalists in Silicon Valley, hailed the release of the model as “AI’s Sputnik moment”.
The sudden emergence of a small Chinese startup capable of rivalling Silicon Valley’s top players has challenged assumptions about US dominance in AI and raised fears that the sky-high market valuations of companies such as Nvidia, Alphabet and Meta may be detached from reality.
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Chip giant Nvidia shed nearly $600bn in market value after Chinese AI model cast doubt on supremacy of US tech firms.
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