DeepSeek

DeepSeek: A Chinese-made artificial intelligence (AI) model called DeepSeek has recently shot to the top of Apple Store's downloads, stunning investors and sinking some tech stocks.

  • What is DeepSeek?

o AI Assistant: A free chatbot similar to ChatGPT, excelling in tasks like math and coding.

o Developed at a lower cost ($6m), compared to OpenAI’s $100m+ cost for GPT-4.

o Political Sensitivity: Avoids politically sensitive topics, like the Tiananmen Square massacre, due to Chinese censorship.

o AI Model: Uses less memory, making it cheaper to perform tasks compared to competitors.

  • Impact on Nvidia and US Tech Industry

o Tech Disruption: DeepSeek’s low-cost model undermines reliance on expensive chips, causing market volatility.

o Nvidia Losses: DeepSeek's success led to a $600bn market loss for Nvidia, marking the biggest single-day loss in US history.