DeepSeek: China's AI Breakthrough Shakes Global Tech Markets
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China AI hopeful DeepSeek rocks Wall Street's magnificent seven
Gift 5 articles to anyone you choose each month when you subscribe. China's answer to OpenAI, a budget artificial intelligence model called DeepSeek, has forced Wall Street to reassess Silicon Valley's lead on the rest of the world in generative AI after DeepSeek held its own against competing technologies in the global cyber arms race. News of DeepSeek's capabilities sent Nasdaq futures down 2.2 per cent and S&P 500 futures 1.2 per cent ahead of the open of US trading on Monday as the world's equity investors took stock of the implications for rich valuations bestowed upon AI juggernauts like chipmaker Nvidia and Microsoft.
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The four graphs that explain DeepSeek
Gift 5 articles to anyone you choose each month when you subscribe. It's the little-known (until this week) Chinese artificial intelligence start-up that has its American rivals, and US investors, on edge. Marc Andreessen, the veteran venture capitalist, has called it AI's "Sputnik moment". What DeepSeek promises is a big leap forward compared with OpenAI's ChatGPT and Google's Gemini. Could it be faster, smarter and use fewer resources? These four charts show why investors are so concerned about DeepSeek's impact on the tech giants - and the broader market.
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How DeepSeek's 'nerdy' billionaire stunned Silicon Valley
Gift 5 articles to anyone you choose each month when you subscribe. A small Chinese artificial intelligence lab stunned the world this month by revealing the technical recipe for its cutting-edge model, turning its reclusive leader into a national hero who has defied US attempts to stop China's high-tech ambitions. DeepSeek, founded by hedge fund manager Liang Wenfeng, released its R1 model last Monday, explaining in a detailed paper how to build a large language model on a bootstrapped budget that can automatically learn and improve itself without human supervision.
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Tech jitters to hit ASX after China offers up AI rival
Gift 5 articles to anyone you choose each month when you subscribe. Jitters in the technology sector could hit Australian shares on Tuesday amid concerns that Chinese start-up DeepSeek will disrupt the US tech giants in a week that's packed with big corporate earnings, key economic data and central bank meetings. Nasdaq futures were down 1.2 per cent after DeepSeek launched a free, open-source artificial intelligence model that it claimed was as powerful as ChatGPT, but built at a fraction of the cost. AI chip leader Nvidia had already tumbled more than 3 per cent on Friday.
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Chinese AI startup DeepSeek unveils a powerful, cost-effective AI model, challenging US tech giants and causing market turbulence. The development marks a significant shift in the global AI landscape.
DeepSeek Emerges as China's AI Powerhouse
In a surprising turn of events, Chinese artificial intelligence startup DeepSeek has unveiled a groundbreaking AI model that rivals, and potentially surpasses, those developed by tech giants like OpenAI and Google. This development has sent shockwaves through the global tech industry and financial markets, prompting a reassessment of the AI landscape
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.Technical Advancements and Market Impact
DeepSeek's R1 model has been hailed as a significant leap forward in AI technology. The company claims that their model is not only as powerful as ChatGPT but also built at a fraction of the cost. This cost-effectiveness, combined with the model's ability to automatically learn and improve without human supervision, has raised concerns about its potential impact on established tech giants
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.The news of DeepSeek's capabilities has had immediate repercussions in the financial markets. Nasdaq futures fell 2.2%, while S&P 500 futures dropped 1.2% ahead of US trading. Tech stocks, particularly those of AI-focused companies like Nvidia and Microsoft, are expected to face increased scrutiny as investors reassess their valuations in light of this new competition
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.The Visionary Behind DeepSeek
DeepSeek was founded by Liang Wenfeng, a former hedge fund manager turned AI entrepreneur. Liang's decision to release the technical details of the R1 model has been seen as a bold move, challenging the secretive nature of many AI companies. This transparency has not only showcased China's growing AI capabilities but also positioned Liang as a national hero who has defied US attempts to hinder China's technological progress
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Global Implications and Industry Reactions
The emergence of DeepSeek has been dubbed AI's "Sputnik moment" by veteran venture capitalist Marc Andreessen, highlighting the potential shift in the global AI race. The company's success challenges the notion of US dominance in AI technology and raises questions about the future of innovation in this field
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.As markets digest this news, the impact is expected to ripple beyond US shores. The Australian Securities Exchange (ASX) is anticipated to feel the effects, with tech-related stocks likely to face pressure. This comes at a crucial time, with a week packed with corporate earnings reports, key economic data releases, and central bank meetings
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.The Road Ahead
As DeepSeek continues to develop and refine its AI model, the tech industry braces for potential disruption. The company's success could lead to increased competition, faster innovation, and potentially more affordable AI solutions. However, it also raises questions about data privacy, ethical AI development, and the geopolitical implications of AI advancement.
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