A new Chinese AI chatbot, DeepSeek, is challenging U.S. dominance in artificial intelligence, causing significant market disruptions. Launched on January 20, DeepSeek, developed by entrepreneur Liang Wenfeng, has soared to the top of download charts in the U.S. and UK. Its low-cost development, utilizing fewer specialized chips, has raised concerns among U.S. tech giants. Nvidia, a key player in AI chip production, saw its stock price drop by 17% in a single day, losing nearly $600 billion in market value. This decline followed DeepSeek’s release, which demonstrated that advanced AI models could be built affordably without relying on high-performance chips banned for export to China. Despite U.S. export restrictions, DeepSeek’s success highlights China’s growing AI capabilities, prompting calls for increased U.S. investment in AI innovation to maintain competitiveness.
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