China's emerging artificial intelligence (AI) startup DeepSeek has caused a huge fall in the tech sector after unveiling its new AI model. The model is built at a significantly lower cost than US companies, which has caused concern among investors and caused the share prices of major tech companies, including Nvidia and other Silicon Valley-based companies, to fall.
DeepSec claims that its model cost just $5.6 million to develop, far less than US tech companies. The technology's capabilities pose a direct challenge to US AI innovation, particularly given China's rapid advances.
As a result, the stock prices of major technology companies have fallen sharply, with Nvidia suffering a loss of around $58 billion. This situation is seen as a major warning sign for US technology companies, especially as they face stiffer competition from Chinese companies.
Analysts have advised investors to reconsider their strategies, and it is believed that this event will usher in a new era in the technology industry. Experts say that the rise of Deepsea could be a US response to China's technological advances and a reflection of major changes in the global tech landscape.
This event demands a rethinking of the future of global technology competition and the trajectory of market leadership.
