Chinese AI startup DeepSeek has debuted a free assistant, DeepSeek R1, sending the world’s AI market into a spin.
The company’s new technology uses lower-cost chips and fewer data and aims to drive AI’s supply chain from chipmakers to data centers.
Analysts estimate markets will lose around $1 trillion after DeepSeek’s latest release as its R1 model boasts greater affordability and performance.
DeepSeek R1’s open-source AI model is built by a team of 200 employees (compared to OpenAI’s 4,000), proving to its competition that innovation doesn’t neeed to come with a billion-dollar budget.
Another draw card for DeepSeek R1 is that it is uncensored and fully open-source, unlike much of its competition.
The announcement sent DeepSeek to the top of Apple Inc.’s iPhone download charts, igniting doubts in Silicon Valley over the U.S. losing its lead and dominance in AI.
In pre-market reactions, Nvidia’s shares slid almost 10%, Microsoft 4%, Meta Platforms 3.7% and Alphabet 3.1%.
By CEO NA Editorial Staff
