What Is China’s DeepSeek and Why Is It Freaking Out the AI World?

Posted: Jan 27, 2025

  • DeepSeek is an AI startup from China that has developed a breakthrough AI model
  • Offers performance comparable to top chatbots at a fraction of the cost
  • Could potentially disrupt the global tech industry and supply chain
  • Challenges the belief that AI development requires increasing amounts of power and energy
  • Article link: https://www.bloomberg.com/news/articles/2025-01-27/what-is-deepseek-r1-and-how-does-china-s-ai-model-compare-to-openai-meta


What do people on Reddit think?

🚨 Reddit sentiment: mixed/negative - While there is positive sentiment about the democratization of AI and consumer benefits, there is significant concern about the negative impact on big corporations, particularly Nvidia, affecting overall stock sentiments. Summarized comments: - DeepSeek is an open source AI project that is causing concern among AI companies - It supports non-Nvidia hardware, like AMD and Huawei's NPU, which is seen as threatening to Nvidia's dominance - Promotes the democratization of AI by being open source and accessible - Seen as beneficial for consumers by providing competition, though potentially negatively impacting big corporations - Raises concerns about reduced demand for Nvidia's hardware due to efficiency improvements in AI models Stock tickers discussed: $NVDA, $AMD



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