DeepSeek recently surged to the number one position on the Apple app store. While the company’s large language models or LLMs appear comparable to market leaders like OpenAI and Meta, its claims of costing a fraction to train and develop the competitive AI models is shaking not just the US tech stocks, but also the global markets.
DeepSeek AI app might seem like a kid on the artificial intelligence (AI) block, however, it has created fear amongst the top tech giants of the world through its claims. Having shot to the top of Apple’s App Store as per the number of downloads, even the Silicon Valley is filled a sense of fear due to DeekSeek’s sudden rush to popularity.
The DeepSeek AI programme launch made all three main indexes on Wall Street fall this Friday and tech firms taking a hit.
Amid the popularity of DeepSeek AI Chat, Tech and chip firms have been among the big losers in Tokyo, while SoftBank, a key investor in Trump’s AI project Stargate, lost over 6%.
Chinese tech firms linked to Deep crypto, like Iflytek Co., surged on Monday, while on the contrary, chipmaking tool makers like Advantest Corp. slumped on the potential threat to demand for Nvidia Corp.’s AI accelerators.
Notably, US stock index futures also tumbled amid concerns of DeepSeek’s AI models disrupting US technological leadership. DeepSeek stock market is in search with DeepSeek stock symbol and stock ticker also in trend.
Deep Seek is a Chinese AI startup that has triggered selloff in the US and Japan stocks, threatening tech dominance. DeepSeek crypto, its demonstration of not requiring massive investments for cutting edge AI development has sent Chinese tech shares on a rally on prospects of disrupting US dominance in technology.
DeepSeek stock price is something everyone has their eyes on due to the news. DeepSeek R1 model is now live and open-source. Cheaper to train and use, DeepSeek R1 also poses lower barriers to entry.
Nirgunan Tiruchelvam, head of consumer and internet at Aletheia Capital, said, “DeepSeek’s release is deeply problematic for the thesis that massive capital expenditure is necessary for AI dominance,” in an interview with Bloomberg. Chief investment strategist at Saxo Markets, Charu Chanana added, “While Nvidia has a strong foothold, DeepSeek's emergence underscores that AI dominance cannot be taken for granted.”
Senior market analyst at Capital.com, Kyle Rodda stated, “The proverbial arms race in AI investment has taken a very interesting turn. China’s advancements will undoubtedly catch the ire of the Trump administration, raising geopolitical risks for US firms.”
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