DeepSeek, China's AI model: News & Discussion

[Beijingwalker]

DeepSeek’s Rise: How China’s $236B Influx Could Crush NVIDIA (NVDA) AI Stocks​

Vladimir Popescu
January 27, 2025

Source: Watcher Guru

China AI stocks have engineered a fundamental shift as DeepSeek revolutionizes competition against NVIDIA in AI chips. Through strategic development, this startup has pioneered OpenAI-level model quality while slashing traditional costs. The strategic deployment of $236.2 billion into Chinese markets has transformed the AI chip leadership landscape. Across multiple sectors, these developments have NVIDIA AI stocks investors recalibrating market expectations.

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How China’s Investments Could Disrupt NVIDIA and the Global AI Market​

DeepSeek’s Cost-Effective Innovation​

Source: DeepSeek, OpenAI, Bernstein Analysis

Multiple China AI stocks show fresh potential as DeepSeek proves its capabilities. Raymond James analyst Srini Pajjuri said:

“DeepSeek clearly doesn’t have access to as much compute as U.S. hyperscalers and somehow managed to develop a model that appears highly competitive.”

Just about $5.6 million went into their latest AI model. Several experts now say this proves smart innovation beats massive spending.

China’s Strategic Market Response​

Various institutions pump serious money into China AI stocks. UBS head of China strategy James Wang said:

“By setting up a longer-term investment horizon for the major institutional investors on the A-share [market], this should reduce the inherent volatilities in the market.”

NVIDIA’s Market Position Under Pressure​

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Numerous NVIDIA AI stocks feel the heat from multiple China tech investments. Several analysts watch NVIDIA’s 2025 Blackwell chip launch closely.

Economist Ed Yardeni said:

“This might be bad news for the Magnificent 7 that had plans to dominate the AI market with their expensive AI services. The question is whether they will disappoint because their capital spending on AI is soaring faster than are their revenues.”

Global Market Implications​

Market volatility impact intensifies as various investors rush toward Chinese stocks.

Raymond James analyst Pajjuri offered an alternative perspective:

“A logical implication is that DeepSeek will drive even more urgency among U.S. hyperscalers to leverage their key advantage (access to Nvidia GPUs) to distance themselves from cheaper alternatives.”

[Image 3: Timeline of DeepSeek’s developments and NVIDIA stock performance]

Future Market Dynamics​

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Several China tech investments shake up the playing field daily. Some players share tech freely while numerous others keep secrets. Multiple China AI stocks gain ground as various NVIDIA AI stocks face tough challenges ahead.

DeepSeek's Rise: How China's $236B Influx Could Crush NVIDIA (NVDA) AI Stocks

Explore how China’s $236B influx and DeepSeek’s rise could disrupt NVIDIA AI stocks, impact AI markets & reshape China AI investment.

watcher.guru

 

[大汉奸柳传志]

DeepSeek tops iPhone app store charts: What does it mean?

DeepSeek, a mobile AI application, has surpassed OpenAI's ChatGPT to claim the top spot on the iPhone free app charts in both China and the U.S. This milestone comes just days after its Chinese developer launched the "reasoning model," DeepSeek R1.When

news.cgtn.com

They kept calling Tiktok a spyware now they finally got one, LMAO

no doubt deepseek can collect a lot more sensitive info than a brainless video sharing platform. imagine researchers, government employees... basically paper pushers from every field could be using it. Sure they can deploy it locally to prevent data leak, but I bet 99% of the users wouldn't bother, and there's no guarantee it's backdoor free

What would you do if put in the shoes of America? Banning the app means admitting defeat in the AI race, allowing it means becoming one way transparent to a foreign adversary. Hmm... what to choose

 

[Beijingwalker]

China's DeepSeek buzz puts tech stocks on track for $1 trillion wipeout​

Fears China's ChatGPT competitor is more cost effective and runs on less advanced chips sets off global tech sell off

Questions now being raised over the huge valuations on AI firms. Photographer: Lam Yik/Bloomberg

MON, 27 JAN, 2025 - 10:28

Chinese artificial intelligence startup DeepSeek rocked global technology stocks Monday, raising questions over America’s technological dominance.

Buzz grew over the weekend about DeepSeek’s latest AI model being cost-effective while running on less-advanced chips, casting doubt on the validity of the rich valuations for companies like Nvidia, which has led the global AI stock boom as its chips have been seen as essential to the technology. Shares of the Santa Clara, California-based firm slid 10% in premarket trading on Monday.

Nasdaq 100 futures tumbled 3.4%, while contracts on the S&P 500 fell 2% in New York this morning. In Europe, tech stocks led market losses, with shares of chip equipment maker ASML Holding down 11%. The Cboe Volatility Index, known as the VIX, spiked higher. The Nasdaq 100 and Europe’s Stoxx 600 technology sub-index were together set for a market capitalization wipeout of roughly $1 trillion (€0.95tr), if the losses hold.

“DeepSeek shows that it is possible to develop powerful AI models that cost less,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “It can potentially derail the investment case for the entire AI supply chain, which is driven by high spending from a small handful of hyperscalers.”

Roughly 200,000 Nasdaq 100 futures contracts changed hands by 4:45 a.m. New York time, about four times more than the 30-day average for this time of day, according to data compiled by Bloomberg.

The AI model from DeepSeek — founded by quant fund chief Liang Wenfeng — is widely seen as competitive with OpenAI and Meta Platforms Inc.’s latest offerings. Lauded by investor Marc Andreessen as “one of the most amazing and impressive breakthroughs,” DeepSeek’s app shows its work and reasoning as it addresses a user’s written query or prompt. Released last week, the product is now at the top of Apple Inc.’s App Store rankings, with users praising its transparency.

Chinese AI-related stocks reacted positively, with mainland-listed Merit Interactive Co. among those surging by their daily limits. Merit is among those with the clearest links to DeepSeek after stating in an earlier filing that it had incorporated the homegrown AI firm’s model into marketing. In Hong Kong, the Hang Seng Tech Index climbed as much as 2% ahead of Lunar New Year holidays this week.

AI trades slumped elsewhere as investors rethought assumptions on computing power and energy. Siemens Energy AG, one of the few AI winners in Europe, slid 20%.

The DeepSeek product “is deeply problematic for the thesis that the significant capital expenditure and operating expenses that Silicon Valley has incurred is the most appropriate way to approach the AI trend,’ said Nirgunan Tiruchelvam, head of consumer and internet at Singapore-based Aletheia Capital. “It calls into question the massive resources that have been dedicated to AI.”

The decline in Nasdaq futures comes at the start of a big week for earnings from major tech companies including Apple and Microsoft Corp. Profit growth is expected to have slowed while valuations remain inflated, once again causing concern over the large AI-driven rally in the sector.

The Nasdaq 100 is trading at 27 times estimated forward earnings, compared with its three-year average of 24 times. Nvidia is at 33 times, though that’s slightly down from its three-year average.

The DeepSeek release raises new doubts, challenging the notion that China’s AI technology is years behind US counterparts. Washington’s trade restrictions had kept the most cutting-edge chips out of China’s hands, but DeepSeek’s model was built using open source technology that is easy to access.

“While current leaders like Nvidia have a strong foothold, it is a reminder that AI dominance cannot be taken for granted,” said Charu Chanana, chief investment strategist at Saxo Markets. “The emergence of China’s DeepSeek indicates that competition is intensifying, and although it may not pose a significant threat now, future competitors will evolve faster and challenge the established companies more quickly. Earnings this week will be a huge test.”

China's DeepSeek buzz puts tech stocks on track for $1 trillion wipeout

Fears China's ChatGPT competitor is more cost effective and runs on less advanced chips sets off global tech sell off

www.irishexaminer.com

 

[大汉奸柳传志]

AI bubble bursting?

 

[Hamartia Antidote]

Apparently, deepseek prefers Huawei's Ascend, so the official statement was made

DeepSeek R1 Adds Huawei Ascend Support Shaking Up AI Hardware and Challenging Nvidia’s Dominance

DeepSeek R1 now supports Huawei Ascend, offering a cost-efficient AI alternative, challenging Nvidia’s dominance, and reshaping the global AI hardware landscape

www.ctol.digital

That mentions inference running.

 

[HAIDER]

Non Ai portal is open source. All are controlled. Test two queries and get the answer....how many Palestinians died in Gaza or how many journalist died in Gaza and see the answer

 

[hydrabadi_arab]

Nvidia stock down 15% hahaha

 

[Beijingwalker]

China's DeepSeek triggers global tech sell-off​

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[Distant_Observer]

US AI just got cooked. Well done China.

 

[SoulSpokesman]

Meanwhile Brofessor sb too has chipped in with his deep insights into DeepSeek

Chinese Lab's AI LLM Performance Shocks Silicon Valley

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

A Chinese Lab has sparked panic in Silicon Valley with the release of its first AI model that can outperform America's best despite being built more cheaply and with less-powerful chips, according to the US media reports. The lab called DeepSeek has recently unveiled a free, open-source large-language model (LLM) that it says took only two months and $5.5 million million to build, using reduced-capability chips from Nvidia called H800s. By comparison, the US-based OpenAI's closed LLM model cost $100 million to develop and train using the most advanced H100 chips from Nvidia. Open-source and free DeepSeek models can significantly help developing nations like Pakistan by providing affordable access to the latest AI technology, allowing them to develop solutions tailored to their specific needs without high costs.

DeepSeek, a small startup lab in China, has accomplished this feat despite the US technology export controls to slow down China's AI efforts. Former Google CEO Eric Schmidt is now acknowledging that China has narrowed or closed the AI technology gap with the United States.

In 2022 America banned the export of advanced chips to China, according to Economist magazine. Nvidia, a leading chipmaker, has had to design special downgrades to its products for the Chinese market. America has also sought to prevent China from developing the capacity to manufacture top-of-the-line chips at home, by banning exports of the necessary equipment and threatening penalties for non-American firms that might help, too.

The slower H800 chip was created by Nvidia to comply with export regulations that prevent the chipmaker from selling its high-end GPUs to China. Apparently, the limits imposed by Washington on Chinese engineers' access to the most advanced Nvidia chips forced them to develop a much more efficient model to achieve the same performance as their US counterparts. Other Chinese tech companies ranging from Alibaba and Huawei to TenCents are also working on their own multiple AI models, including LLMs.

DeepSeek has emerged from High-Flyer, a Chinese hedge fund set up in 2015 to use AI to gain an edge in stocks-trading. Conducting fundamental research helped High-Flyer become one of the biggest quant funds in the country, according to The Economist magazine.

Regards

 

[Pakistan Space Agency]

I've downloaded DeepSeek today just to try it out. It gives a feeling of more reliability than ChatGPT.

 

[Pakistan Space Agency]

Just like Chinese EVs and phones, soon dozens of out of nowhere new makers will just pop up everywhere across China.

Chinese tech breathes like rabbits.

But why is China always seen overtaking the US that the Americans invented but China never comes up with anything new for others to take over?

 

[Beijingwalker]

Chinese tech breathes like rabbits.

But why is China always seen overtaking the US that the Americans invented but China never comes up with anything new for others to take over?

Barely 10 years ago China was still a very poor country with rather backward technology, it takes time to first catch up and then surpass. what people see now like 6th gen jets, hypersonic missiles.. are just the beginning of this process.

 

[Pakistan Space Agency]

Barely 10 years ago China was still a very poor country with rather backward technology, it takes time to first catch up and then surpass. what people see now like 6th gen jets, hypersonic missiles.. are just the beginning of this process.

What I mean is that China is only doing better what American invents in the first place. China is never seen to be coming up with anything new, original. Nothing at all. Why is that?

 

[Mr X]

Chinese AI startup DeepSeek overtakes ChatGPT on Apple App Store​

By Reuters
January 27, 2025

Chinese startup DeepSeek’s AI Assistant on Monday overtook rival ChatGPT to become the top-rated free application available on Apple’s App Store in the United States.

Powered by the DeepSeek-V3 model, which its creators say “tops the leaderboard among open-source models and rivals the most advanced closed-source models globally”, the artificial intelligence application has surged in popularity among US users since it was released on Jan. 10, according to app data research firm Sensor Tower.

The milestone highlights how DeepSeek has left a deep impression on Silicon Valley, upending widely held views about US primacy in AI and the effectiveness of Washington’s export controls targeting China’s advanced chip and AI capabilities.

AI models from ChatGPT to DeepSeek require advanced chips to power their training. The Biden administration has since 2021 widened the scope of bans designed to stop these chips from being exported to China and used to train Chinese firms’ AI models.

However, DeepSeek researchers wrote in a paper last month that the DeepSeek-V3 used Nvidia’s H800 chips for training, spending less than $6 million.

Although this detail has since been disputed, the claim that the chips used were less powerful than the most advanced Nvidia products Washington has sought to keep out of China, as well as the relatively cheap training costs, has prompted U.S. tech executives to question the effectiveness of tech export controls.

Little is known about the company behind DeepSeek, a small Hangzhou-based startup founded in 2023, when search engine giant Baidu released the first Chinese AI large-language model.

Since then, dozens of Chinese tech companies large and small have released their own AI models, but DeepSeek is the first to be praised by the US tech industry as matching or even surpassing the performance of cutting-edge US models.

Downloaded after reading this news. It is only available for China . I logged in with Gmail, login failed, I logged in with Apple and it worked but when I type a message, it says cannot perform action.

Not even close to ChatGPT