The speed with which the new Chinese app AI Deepseek shook the technological industry, markets and bull’s sense of American superiority in the field of artificial intelligence (AI) nothing amazing.
Venture Capitalist Marc Andressen may have said it best. “Deepseek-R1 is Ai’s sputnik moment,” he announced on Sunday at X, referring to the satellite that began the space race.
Deepseek was the most enthusiasm for a free app at the Apple American App Store over the weekend. By Monday, the new AI Chatbot launched a huge sale of the main technological shares that were in freedom as fears set up over American leadership in the sector.
For example, shares of AI chip designer and recent Wall Streeta Darling Nvidia withdrawn by 17% by the time US markets were closed on Monday. Or to bring it out in even strict conditions, it has lost nearly $ 600 billion in market value, which, according to Bloomberg, is the biggest decline in the history of the American Stock Exchange.
This extraordinary, historically scabies can be largely attributed to something as simple as the costs. And the claim of Deepseek’s developers who raised serious questions in the Silicon Valley.
While Chatgpt -Maker Openi Bloody Money – spending $ 5 billion last year – Deepseek developers say he built this latest model for only $ 5.6 million.
It is a small part of the costs that AI giants like the opening, Google and anthropy relied on the development of their own models.
As this dramatic moment for the sector took place, there was a tangible silence in many corners of the Silicon Valley when I contacted those who usually talk about. Many observers, investors and analysts seemed astonished.
Some wondered if it had marked the opportunity to buy. Others questioned the information Deepseek provided.
“I still think the truth is below the surface when it comes to what’s going on,” Veteran’s analyst Gene Munster told me on Monday. He examined that the Financial Deep name was called and wondered if the startup had been subsidized or whether its numbers were correct.
Chatbot is “surprisingly good, which just makes confidence difficult,” he said.
Nonetheless, the sudden arrival of Deepseek is the “Fleks” and “Black eye for us technology”, use your words.
Last week, after all, Openai, I am Altman and Oracle’s Larry Ellison, joined President Donald Trump at a press conference that could really be a statement to the public.
The event was represented by Peak American Bullishness on AI.
They announced Stargate, a joint investment promising up to $ 500 billion in private investment for AI infrastructure: data centers in Texas and beyond, together with 100,000 new jobs.
The US seems to have thought that his abundant data centers and controls over chips had given the highest region of the AI command lead, despite Chinese domination in rare metals and engineering talent.
Some have even seen this as pre -concluded that America will dominate the AI race, despite Some high warnings of top executives who said that the benefits of the country should not be taken for granted.
Now he may continue to command the sector, but there is a feeling that Deepsek has shaken part of that breakthrough.
Trump’s words after a sudden appearance of Chinese app in recent days were probably cold comfort like Altman and Ellison. He called this moment a “awake call” for the American Technology Industry and said finding a way for cheaper AI was ultimately a “good thing”.
It is also worth noting that there were only technological shares on Monday. Energy supplies have also done. Deepseek’s arrival in the scene increased many assumptions that we had long held on what needed to develop AI.
Maybe that nuclear renaissance – Including once again cracking the US Energy Factory with three miles – They won’t need it. Maybe there is not so much capital, calculating and power.
For now, the future of giants of the semiconductor like Nvidia remains unclear.
Deepseek says his model has been developed with existing technology, along with an open code software that anyone can use and share for free.
But Wired Reports It has been the founder of the Deepseek for years, the Hedge Fund Liang Wenfung High-Flyer stored the chips that form the backbone of Ai-I know as GPUs or graphics units.
The company said its models implemented the H800 chips made by Nvidia. American policy that limits the sale of chips with a higher China drive could get a second look under the new Trump administration.
Openai’s Alone Altman was mostly quiet on Monday. But very late in the day, he wrote that Deepsek was “impressive … especially about what I could deliver for the price”.
“Obviously we will deliver a lot better models, and it is also legally empowering that we have a new competitor!” He wrote.
Sputnik truly introduced in space. And there they are now caught. How his technical sector will respond to this apparent surprise of the Chinese company will be interesting – and may have added a serious fuel to the AI race.
