The emergence of a low-cost Chinese AI model, DeepSeek, has cast doubts on the dominance of Western companies in the AI sector, sending technology stocks plummeting on Monday. Futures on the Nasdaq 100 and S&P 500 dropped significantly, with shares of Nvidia, Oracle, and Palantir experiencing substantial losses. DeepSeek, which has surpassed ChatGPT in downloads, offers a cheaper alternative to existing AI models, raising questions about the sustainability of Western companies' investment levels in the field.
technology stocks on Monday, sending the likes of Nvidia and Oracle plummeting, as the emergence of a low-cost Chinese AI model cast doubts on Western companies’ dominance in the sector.last week launched a free assistant it says uses less data at a fraction of the cost of incumbent players’ models, possibly marking a turning point in the level of investment needed for AI.
DeepSeek, which by Monday had overtaken US rival ChatGPT in terms of downloads on the Apple Store, offers the prospect of a viable, cheaper AI alternative. This has raised questions about the sustainability of the level of spending and investment on AI by Western companies, including Apple and Microsoft.
Marc Andreessen, the Silicon Valley venture capitalist, said in a post on X on Sunday that DeepSeek’s R1 model was AI’s “Sputnik moment”, referencing the former Soviet Union’s launch of a satellite that marked the start of the space race in the late 1950s.“Deepseek-R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, a profound gift to the world,” he said in a separate post.
AI CHINA TECH STOCKS DEEPSEEK COMPETITION
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chinese OpenAI rival DeepSeek tops iPhone download chartsDeepSeek is stirring doubts in Silicon Valley about the strength of America’s lead in artificial intelligence.
Read more »
Analyst Programmer at The University of The Western Cape - Western Cape BellvilleIT Industry News. Daily.
Read more »
Cyber Security Specialist - Western Cape Western CapeIT Industry News. Daily.
Read more »
Western Cape Western CapeIT Industry News. Daily.
Read more »
Kairo Forbes dreams big: young influencer sets sights on becoming top runway modelKairo Forbes, is chasing her dream of becoming a top runway model, inspiring others to follow their passions, no matter their age.
Read more »
Mazda Confirms Commitment to South Africa with New Model LineupMazda South Africa has reassured customers of its continued presence in the country, despite recent sales declines. The company plans to introduce four new models in the coming months, including the CX-80 SUV, the electric 6e sedan, and the next-generation CX-5.
Read more »