The release of a new Chinese AI model, DeepSeek AI, has caused complete havoc for competitors’ stock market value, with Chinese innovation pecking US AI models. The most noticeable loser was chip giant Nvidia who suffered a $600bn loss in stock value.
From AI experts in Silicon Valley, the news reached the whole tech world quickly due to the “seismic” change in who is the current leader in AI.
President Trump has admitted that the US needs a “wake-up call” to recover its global position. Despite the US owning Chat-GPT which was founded in 2022, Deepseek R1 undercuts the cost of its rival AI models. It is the most downloaded app on the Apple Store.
Powered by the DeepSeek-V3 model, the technology cost a fraction of the price of other models at around $6million.
