This week, the technology and finance markets were shaken by a real turnaround: the Chinese startup DeepSeek managed not only to challenge the giants of artificial intelligence, such as OpenAI and Microsoft, but also brought profound impacts to the financial markets and the AI chip industry. . Let’s explore the details and understand what this means for you.
DeepSeek: How a Chinese startup shook up global AI?
Startup DeepSeek isn’t just competing with established AI models like OpenAI’s ChatGPT — it’s outperforming them in terms of efficiency and cost. The R1 AI model, developed by DeepSeek, is already being touted as a game-changer in the industry:
Dramatically Reduced Costs: DeepSeek was able to train its R1 model at a fraction of traditional industry costs — about 1/50th of what it costs to train a complex AI model like OpenAI’s O1.
Test Time Scaling Technology: According to Nvidia, DeepSeek used a technique called Test Time Scaling to create efficient models using more affordable hardware.
DeepSeek, Nvidia GPUs, and the H100 Chip Controversy
Recently, Scale AI CEO Alexandr Wang stated that DeepSeek had around fifty thousand Nvidia H100 GPUs, which raised suspicions as these chips cannot be sold to China due to US export laws. The situation became more complicated when Elon Musk entered the discussion, supporting Wang's claim.
The internet went into shock, with speculation that Singapore could have brokered the acquisition of these chips. However, Nvidia has spoken out, stating that DeepSeek "worked within export control laws" and that its model is an excellent example of technological innovation.
- Nvidia Stock Impact: The possibility that DeepSeek's advances could reduce demand for super-robust and expensive AI infrastructure has sent Nvidia's stock down 17%, dropping it from the No. 1 spot to the No. 3 spot among most valuable companies. of the world. The decline reflects investor concerns that the high-performance chip market may be in a bubble.
It is worth noting that DeepSeek's terms of use explicitly state that user data and their searches will be collected and used to "improve" the AI agent.
Furthermore, when asked about historical costumes, or negative events in China, DeepSeek was clearly censored.
What about Bitcoin?
The revolution brought about by DeepSeek has shaken up the technology industry in a way no one expected. With major investors pulling capital out of risky assets due to uncertainty, Bitcoin and other cryptocurrencies have also felt the impact. The correlation with the Nasdaq index resulted in a sharp drop in crypto prices, generating a wave of concern — but also opportunities.
According to British bank Standard Chartered, this drop represented an excellent buying opportunity for those looking to position themselves. After all, it is during times of correction that the best investment opportunities arise.
What to expect from the future?
We are facing a time of uncertainty, but also of great potential for growth. As companies like DeepSeek challenge market norms, the artificial intelligence landscape is being redefined. This creates unique opportunities for those who are prepared and understand how technological changes affect financial markets.
Posted Using INLEO