The arrival of China's DeepSeek shocked the whole world. This cheap model, which can be easily used by everyone in the world, reached first place in the App Store, and DeepSeek took over the US market in a single day. With this, there was a huge drop in tech stocks in the US. This arrival of DeepSeek comes at a time when the US is planning to conquer the world in artificial intelligence.
What is DeepSeek
The DeepSeek V3 app is a recently released AI platform for tasks such as natural language processing, data analysis, and various machine learning applications like ChatGPT.
Until recently, DeepSeek was just a Chinese startup that most people didn’t know about. But DeepSeek, which has become a global talking point, was founded in 2003 by 40-year-old businessman Liang Wenfeng. In 2015, after graduating from Zhejiang University, he co-founded a quantitative hedge fund called Hi-Flyer. Through Hi-Flyer, he used AI for trading strategies to predict market trends and make investment decisions. In 2021, before the US government under Joe Biden restricted exports of AI chips to China, he began buying thousands of Nvidia graphics processors as an AI side project. Although DeepSeek was initially seen as a side project, Liang was personally involved in the company and its research. He also planned to make DeepSeek a leader in AI in the country by recruiting top talent from Chinese universities and paying them on the scale of ByteDance, the parent company of the leading social media platform TikTok. The operation was not about profit but about the future.
"Although they said that the new AI would be a game changer, they didn't pay much attention to the hairstyle and appearance at first," said Liang, the business partner of DeepSeek founder.
Shockingly released The company
Launched the DeepSeek Coder for coding in November 2023, and before that, the Seek LM, in the international market. The low-cost DeepSeek was released in May 2024. This completely shocked the market. ByteDance, Tencent, Baidu, and Alibaba kept their prices low during this time. After that, the company also launched the 236 billion parameter DeepSeek R1 AI model. DeepSeek costs less than ten per cent of what other companies cost. The company recently launched the DeepSeek V3 AI model, shocking tech giants like Google, Meta, OpenAI, Microsoft, Amazon, and Tesla.
DeepSeek's low price
Chinese AI company DeepSeek has become a major challenger to ChatGPT as the most downloaded free app in the US. Reports suggest that Nvidia only needed 2,000 chips to develop DeepSeek-V3, while other leading models require 16,000 chips or more. This is what makes DeepSeek stand out. They did this by using older-generation GPUs. Computer GPUs are needed to train AI models. DeepSeek uses an older G.P. called the cheap H800. Using U, they found ways to increase the capacity of old GPUs, and in addition, using multi-headed delayed attention technical design and the presence of young researchers, they also made the model ready with a state-of-the-art AI system at a low cost.
OpenA. I spent $ 100 million (approximately Rs. 863 crores) to train the Chat G. P. T-4 model. At that time, only $ 5.6 million (approximately Rs. 48.3 crores) was spent on DeepSeek V3.
US models
When it overtook the US models and conquered the market, a new model called DeepSeek R One was also released. This has become a big challenge for the US models. DeepSeek was able to surpass many benchmarks of Chat G. P. T-4 (Open AI), Cloud 3.5 (Anthropic), Sonnet, and Lama 3.3 (Meta). Experts have said that DeepSeek is far ahead in terms of coding match detection. The open-source DeepSeek models have put the USA models, which are working towards profit, in trouble.
Conquered the US market
After DeepSeek was launched in the US markets by conquering the market, the US market crashed, especially big tech stocks like Nvidia, which reported a 17% decline. With this, the company's market value was reduced by about $ 465 billion.
With the arrival of DeepSeek, US tech stocks such as Microsoft, Meta, Tesla, and Amazon suffered a loss of one trillion dollars. Companies such as Apple and Google's parent company Alphabet also suffered huge losses. While Alphabet fell more than 2%, Microsoft, which has invested billions in Open AI, fell close to 3%. The Nasdaq Composite also fell 3.1%.
How America sees it
When Trump took office as US president, he announced the world's largest AI project worth $500 billion. Trump had announced that the US would become a country that could compete with China in artificial intelligence and that he would bring together the world's best companies like Open AI, Oracle, and SoftBank to achieve this. At this time, DeepSeek came and conquered the market, surpassing the US tech giants that had conquered the whole world.
Meanwhile, US President Donald Trump said that the technology of Chinese startup DeepSeek should inspire American companies and that it would be good for Chinese companies to bring a cheaper and faster method of artificial intelligence to the world.
