The IA frenzy that reshaped the world of technology and caught the attention of Wall Street took an anxious turn on Monday after A Chinese upstart broke out on the sceneDazzling the first users and sparkling the fears that AI leaders are now threatened.
It was not only the performance of the Chinese model that shook investors and American executives. The team behind Deepseek, the manufacturer of AI models, says that technology uses cheaper fleas and less data than AI American popular assistants that have captivated the technological elite and the wider audience.
A foreign competitor offering a rival product to a fraction of the cost questioned the exorbitant spending of American technology giants. And he pushed holes to the idea of American technological supremacy and innovation, at the cost of many most favored companies in Wall Street.
If the most expensive and sought after IA fleas are not as vital as before, an entire ecosystem built around a massive AI investment could be in danger.
Deepseek is a Chinese startup that develops AI models. Its new R1 model, released in late January, praised rapidly for its performance references. Its impressive exploits stimulated an increase in use. The Deepseek application is now classified at the top for iPhone downloads in the United States, just before the Openai Chatppt. “”Deepseek-R1 is now live and open source, competing with the Openai model“The company claims on its website.
American venture capital Marc Andreessen called the model “One of the most incredible and impressive breakthroughs I have ever seen. “Perhaps even more striking than performance on Deepseek shares is the cost of its development. Deepseek says that his breakthrough model cost less than $ 6 million to train. It is an incredibly modest figure, Given the OPENAI GPT model Cost more than $ 100 million Train.
If Wall Street had already expressed a certain skepticism about the expenditure of the AI of American technological companies, the existence of a cheaper alternative could amplify this criticism. The broader involvement of the usefulness of Deepseek is that it can undermine the current development process of AI assistants. Why should investors accept enormous increases in spending by American technology giants when a cheaper alternative is already available?
The American technological enterprise at the heart of the history of AI growth has received one of the most sharp blows. NVIDIA (Nvda) The stock dropped by 17%. Other members of the “Magnificent Seven” who did AI at the center of their growth stories have also suffered damage. Microsoft (Msft) fell by 2%, while the alphabet (Googl,,Goog) lost 4% on Monday.