China's DeepSeek app release sends US Tech Stocks Tumbling

[not2easy]

Silicon Valley's Tech leaders say the DeepSeek app shows how China can compete with US AI efforts. Tech-laden Nasdaq index dropped early today by about 2.7 percent.

Several tech companies that have banked on a surge of AI interest sold off Monday, with U.S. chipmaker Nvidia down more than 12 percent at the opening bell. Microsoft lost around 3.5 percent, Meta Platforms lost 1.6 percent, and Oracle dropped more than 7 percent. The tech-focused Nasdaq composite index was down 3.4 percent in the early afternoon.

according to The Washington Post: https://www.washingtonpost.com/business/2025/01/27/deep-seek-ai-markets-nvidia/

_{(removed expired free link.)}

[edited by: not2easy at 12:37 pm (utc) on Feb 9, 2025]

[Whitey]

Interesting update, @not2easy.

The rapid market reaction to DeepSeek underscores just how much China’s advancements are shaking up the global AI landscape. The fact that Nvidia dropped over 12% highlights the vulnerability of U.S. companies relying on the AI boom. What’s particularly intriguing is how DeepSeek’s development could open up competition with open-source AI platforms, potentially leveling the playing field for smaller players and nations outside the U.S.-China tech rivalry.

- Do you think DeepSeek’s rise will push U.S. companies to accelerate open-source innovation to stay competitive?
- Could this signify a long-term shift in global AI dominance or just a short-term market overreaction?
- How might regulators approach the increased competition between closed and open-source AI initiatives?

Some tech investors were impressed at how quickly DeepSeek was able to create an AI assistant that nearly equals Google’s and OpenAI’s for roughly $5m while other AI companies spend billions for the same results, particularly with China under strict chip export controls that limit DeepSeek’s access to computational power. The model’s low-budget success could threaten the US’s lead in the AI market.

https://www.theguardian.com/business/2025/jan/27/tech-shares-asia-europe-fall-china-ai-deepseek

Looking forward to hearing everyone’s insights.

[Whitey]

Also: https://www.theguardian.com/technology/2025/jan/27/deepseek-cyberattack-ai

[RedBar]

Am I the only one confused with this installation?

I tried installing on two high spec smart phones, it just hung, did nothing and then told me my GMail address was not valid.

So I then went to my 7 year old iPad, it told me to enable cookies, I did that, it installed immediately and within seconds I was using it.

So the first question, I assume I need to enable cookies on my Androids, will it work then? I run and clean phones twice daily, is this really necessary.

However the next question is that I have seen varying minimum requirements to be able to use it and especially so on a Windows PC such as Win 10 / 11, Quad core+, Nvidia, 8+GB RAM, 50+GB SSD, then specific software I haven't a clue about.

There is a lot of talk about this stuff however no one is advising about the basics, it seems to be automatically assumed that everyone knows what is required and where to get it.

And, FWIW, I did a DeepSeek search and it was not very accurate, it had several inaccuracies, for me it was just another scraper but with more scraping.

Ok, it was my widget speciality BUT for someone NOT knowing what I do they would probably take it as fact when, in reality, it was not. Don't get me wrong, it was impressively quick and I could easily see myself usiing this instead of G/DDG for some things.

[RedBar]

Quick update ... It's now installed on my phone, just like that :-)

[Micha]

I'll be honest, I don't really care about Deepkseek, I just find it interesting that the AI bubble is bursting on the stock market. But what I find really funny is that OpenAi is training ChatGPT with our content and is now crying because Deekseek was probably trained with their data. It's all just ridiculous

[url]https://www.ft.com/content/a0dfedd1-5255-4fa9-8ccc-1fe01de87ea6[/url]

[Dooku]

Deekseek was probably trained with their data

I am LMAO, you couldn's make this sh|t up if you tried and now it's happening for real :-)
The most unscrupulous person and scam artist Sam Altman who is stealing content left and right and leaves no stone unturned is now crying when the same happens to him? Yeah, it was all jokes, right?

[RedBar]

Deekseek was probably trained with their data

Isn't that what happens all the time with new and evolving tech surely?

Over the last 30+ years of site building if I ever saw something I liked and had no idea how to do it I went straight to the source code to see how it was done and so did many others and it's happened across all industries as time has progressed. Quite simply it's a learning experience no matter whether it's tecnology or a traditional trade apprenticeship.

[Whitey]

Isn't that what happens all the time with new and evolving tech surely?

Absolutely.

And i wouldn't be surprised if there is an international strategy, particularly by China, to upend US dominance by breaching the financial underpinning of AI development in the West, with a growing list of competing AI alternatives. China is urgently pursuing this to keep up or potentially overtake. Dishing out technology en-masse "free" and via "Open Source" to the "people" is a fast way to gain rapid attention and traction, as can be seen by the Apple downloads, headlines and stock price fall.

Intellectual property protection will be a major issue across global sectors, not just content theft.

[Mark_A]

Clever the Chinese developers have developed DeepSeek to work in English apparently so well.
Makes me wonder if there are any advantages to working in Chinese.