China’s DeepSeek AI shook markets, with its low-cost tech and powerful features causing panic in crypto, AI stocks, and investors.
DeepSeek AI, a new Chinese tech startup has just caused a massive stir in the global market with its latest launch of DeepSeek-V3. This one’s an AI model that’s way cheaper to run than competitors like OpenAI’s ChatGPT and Google’s Gemini, has people going crazy over it. The model’s performance? Off the charts. It crushed benchmark tests, showing it can beat top U.S. AI models in problem-solving and coding tasks.
What’s got the market panicking? DeepSeek’s efficiency. The startup’s $6M model uses low-cost chips, unlike the super-expensive GPUs that U.S. companies rely on. Investors are worried this will shake up the AI game, especially since DeepSeek is open-source and can be used by anyone, including competitors.
The market’s fear is real. After DeepSeek went viral by topping Apple’s App Store, it caused a major crash in AI stocks and crypto. Shares in major companies like Nvidia and Qualcomm tanked, with some dropping 4%. The broader crypto market dipped by 6.5%, while AI coins lost around 10%. People are scared that DeepSeek’s rise means big losses for U.S. AI firms, and investors are selling off like crazy.
DeepSeek’s making waves, and the tech world’s watching to see how this shakes up the AI scene.
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