DeepSeek Shakes AI Landscape, Sparks Investor Jitters
Jan/27/2025
Chinese AI company DeepSeek has disrupted the global AI market by delivering competitive chatbot models using fewer advanced chips than Western leaders like OpenAI. Its R1 model, unveiled in January, has been lauded for its innovation, rivaling top-tier AI systems at a fraction of the cost and earning a spot in the global AI top 10 despite U.S. export restrictions. The breakthrough triggered a selloff in U.S. markets, with Nvidia losing 13% of its value and other chipmakers facing sharp declines as investors reevaluated the dominance of Western tech giants like Meta, Microsoft, and Google. DeepSeek’s rapid rise, bolstered by China’s AI-centric policies, highlights intensifying global competition, though concerns remain over its alignment with Beijing’s propaganda. Analysts predict the upheaval may recalibrate the market without diminishing demand for cutting-edge chips, as the U.S. accelerates efforts to maintain its AI leadership. The following visualisation offers a comprehensive overview of the DeepSeek app.
