The Chinese artificial intelligence start-up Deep Seek on Monday surpassed ChatGPT on the App Store in the US. The DeepSeek is a newly launched AI platform that focuses on providing new AI technologies as well as open-source solutions. As a result of the Chinese-developed app, the US stock market declined as NASDAQ recorded a significant loss. Whereas the Japanese chip manufacturers faced extreme challenges. It has outperformed leading AI models like ChatGPT, Gemini, or Lama in Math and reasoning benchmarks. The app has become a top-rated free app on the App Store in the US.
On the other hand, the Chinese technology stock witnessed increases after DeepSeek became the most downloaded app on the App Store. The app raises serious concerns regarding the prospects of big technology companies like Nvidia and Google.
US stock index futures fell, with S&P 500 futures falling by 1 percent and Nasdaq 100 futures falling by nearly 1.9 percent. According to a Bloomberg report, the sell-off reflects growing investor concerns that DeepSeek’s cost-affordable AI model, developed using low-capacity chips, could affect the business of US technology giants such as Nvidia Corp, OpenAI, and Google.
A Forbes report said that China has developed its AI model ‘DeepSeek’ at a cost of just $5.6 million. Unlike the American AI model, DeepSeek relies on open-source technology, without high-level hardware.
DeepSeek’s success led to a rise in Chinese AI-linked stocks. The Shanghai Composite rose 0.2 percent and Hong Kong’s Hang Seng rose 0.7 percent. On the other hand, chip makers like Advantest and Disco Corp in Japan suffered losses amid fears of falling demand for high-end AI chips.
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