Deepseek Ai Challenges Us Tech Giants Technology

[Gemma]

Seems to be destroying US IT single-handedly. Stock losses are amazing. US tech giant Nvidia to drop $500 billion in stock price, AI chipmaker Nvidia had plunged 16% midway through trading, while rival Broadcom had slumped 17.8%

Shares in major US technology firms have fallen steeply in value after the sudden emergence of a low-cost chatbot built by a Chinese artificial intelligence (AI) firm.

The DeepSeek app, which was launched last week, has overtaken rivals including ChatGPT to become the most downloaded free app in the United States.

Shares in chip giant Nvidia fell 10% while Microsoft and Meta were also lower in early trading in the US on Monday.

The chatbot was reportedly developed for a fraction of the cost of its rivals, raising questions about the future of America's AI dominance and the scale of investments US firms are planning.

 

[Scotty G]

Just reading about it on The Economist website, it sounds like a real game changer in terms of lowering costs. Nvidia alone were down by 17% at the time they put the article out earlier today

 

[Crabtree]

It's a fascinating story, albeit there is an argument that Nvidia (and others) were massively inflated anyway

 

[Bandit]

I don't understand why it is such a big story, anyone care to explain for an idiot?

 

[Tom]

I don't understand why it is such a big story, anyone care to explain for an idiot?

The big story is how did the Chinese get the technology, since the US had used its influence to restrict China's ability to acquire highend Ai chips through sanctions. Has China developed the technology themselves or cheated to get around the sanctions? The latter would confirm that the US is behind China in developing Ai tech