Hi readers! On the fine morning of January 20th, 2025, the world witnessed a tsunami in the tech world with heart in the throat and eyes opened so wide that reaches the forehead.
Deep Seek: Chinese AI App: that truly stands to its meaning become the talk of the town, skyrocketed to the top of the Apple Store’s download charts and sent shockwaves through out the AI world at large.
Deep Seek’s AI chatbot was released on January 20th, 2025, but, within a week (January 27), this Chinese generative AI App caused US tech stocks to plunge, NVIDIA shares fell by more than 13 % while chip companies, including Arm and Broadcom, also plunged. Nasdaq (New York Stock Exchange) crashed as Deep Seek wipes off over $1 trillion in US stocks, sends Microsoft, NVIDIA & Google crashing.
Deep Seek signals a new direction in AI that challenged the established standards while introducing new possibilities in both technology and geopolitics.
The chatbot, made waves in the global market, quickly attracted attention, ignited debates about the future of AI and the shifting balance of technological dominance. The quick reaction from the investors resulted in a significant and massive drop in global tech stocks particularly in the US.
The emergence of Deep Seek is being seen apparently as a an unbeatable (in the near future) competitor to Open AI’s ChatGPT that certainly has caught tech companies in Europe, Australia and the US off guard.
As the implications of Deep Seek’s R1 model sets in, the markets smashed and took a hit, particularly in companies like NVIDIA, which suffered a loss of over $700 billion in the market value. According to Guardian, Apple and other tech giants like Google and Microsoft also saw significant losses.
The success of Deep Seek’s AI sustenance topping the app store charts in the US and UK has provoked some investors to reconsider their faith in The US-led AI companies. The fact that Deep Seek was able to develop such an advanced model without access to the most cutting-edge US technology has raised eyebrows and triggered
doubts about the effectiveness of US sanctions aimed at curbing China’s tech growth.
Probably, the restrictions prompted Chinese to build an impressive AI model using resources that were less expensive and less powerful than what competitors typically rely on. Many are now questioning the need for huge investments in AI infrastructure and technology, particularly when results can be achieved with fewer resources.
What a befitting response to the restrictions?
Liang Wenfeng: a quantitative finance expert founded Deep Seek in 2023 with a desire to build a chatbot that could combine human-like reasoning with practical problem-solving features and by January 2025, Deep Seek had launched its flagship product: the DeepSeek-R1 AI chatbot.
Despite its infancy, the company’s smart development and bold approach have positioned it as an intimidating competitor in the AI space.
Deep Seek’s technology relies on advanced approaches and AI development system that can use the resources efficiently. Compared to OpenAI and Google who have pumped billions of Dollars into their system, Deep Seek: that is equally competitive was developed with less than US$ 6 million and without using expensive hardware and massive data centers which is a standard procedure for developing Artificial Intelligence.
Deep Seek’s core ability is its functioning with minimum computing power while still working fast with accurate responses. Whereas OpenAI and Google requires more efficient algorithms and massive data sets. Resultantly, Deep Seek provided similar performance at a fraction of the cost, making AI more accessible to companies and individuals alike.
Dear readers! can we learn a lesson? After-all, when we would learn to keep our mouth shut and do some work critical to our economy. Every Tom, Dick and Harry in this country is using “Tick Tock” a Chinese app, Can any one of us develop something like Deep-Seek? Probably No, because Such ventures requires
DEEP SEEK: an ability that we lack.
Can we learn the true meaning of a friendship that is:
Higher than Himalia,
Deeper than the ocean and
Sweeter than Honey?
An unthankful nation that lack the ability to pay heed to what their tried and trusted friend is advising.
See you next week. Take care, Bye
