Donald Trump has emphasized that the launch of chatbots by DeepSeek in China serves as a “morning call” for US high-tech companies to lead the global artificial intelligence industry.
Deepseek’s introduction of their R1 model chatbot at a lower cost compared to competitors like Openai’s ChatGpt and Google Gemini led to a $100 million decrease in the value of the US Tech Index on Monday.
This caused NVIDIA, a leading computer chip manufacturer that experienced exponential growth in the AI sector, to lose $600 million in market value, marking the largest decline in US stock market history.
He praised DeepSeek for achieving comparable performance to existing AI models with fewer resources, posing a threat to the dominance of the US-led AI industry.
“It’s beneficial because it reduces costs,” Trump commented. “I see it as a positive development and an advantage.”
On Monday, Deepseek’s assistant surpassed ChatGpt from Apple’s App Store.
While Sam Altman, the top executive at Openai, acknowledged DeepSeek’s capabilities, he mentioned that US industries need to accelerate their advancements in response.
“Deepseek’s R1 model is remarkable, especially considering its affordability,” he noted. “We aim to release superior models and welcome healthy competition. It will motivate us to excel further.”
The US stock market decline extended to Asia on Tuesday following a 1.3% drop in the Japanese share average.
Japanese high-tech stocks, including Advantest, TEPCO, and Disco Corporation, experienced significant declines, while SoftBank’s shares dropped by over 5%.
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Most other major Asian markets were closed for the Lunar New Year holiday.
Major US venture capitalist Mark and Leisen likened the launch of Deep Shek’s R1 model on Monday to the Soviet Union’s surprise launch of Sputnik during the Cold War, considering it a pivotal moment for AI innovation.
According to DeepSeek, the R1 model outperforms Openai’s O1-mini model across various benchmarks and ranks alongside models developed by Google, Meta, and other leading companies.
DeepSeek was founded by Liang Wenfeng, an entrepreneur who previously operated HIGH-FLYER CAPITAL, a hedge fund utilizing AI for stock price pattern recognition. LIANG transitioned to developing AI models as a hobby, with support from hedge funds. In 2023, he established DeepSeek in Hangzhou, China, focusing solely on research rather than commercial products.
The Deep Sheek Assistant and its basic code are available for free download, offering a cost-effective alternative to Openai’s O1 model.
Source: www.theguardian.com
