By A Chinese AI app, Deep Seek, has rapidly gained popularity, causing significant disruptions in the U.S. and European tech markets. Its sudden success has raised concerns among investors, with major companies like Nvidia losing a substantial portion of their market value.
Even U.S. President Donald Trump urged the American tech industry to take notice, describing the app as a “positive development” while emphasizing the need for the U.S. to maintain its technological leadership.Deep Seek, launched recently, has been labeled a game-changer due to its affordability and efficiency.
Developed with an open-source AI model, the app was created at a fraction of the cost compared to its competitors. However, its rise comes amidst U.S. efforts to limit China’s access to advanced chip technology, highlighting the growing competition between the two nations in the AI sector.
The app’s success has sparked a ripple effect, leading to significant declines in the stock values of companies like Google, Microsoft, and Nvidia. Experts suggest that the affordability and accessibility of Deep Seek could disrupt the AI industry’s infrastructure investments. Despite its rapid ascent, analysts believe that limited access to advanced chips could hinder Chinese AI companies from achieving long-term dominance.
