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DeepSeek: all the news about the startup that’s shaking up AI stocks

Feb 06, 2025 - theverge.com
DeepSeek, a Chinese AI startup, has disrupted the AI industry with its R1 reasoning model, which competes with leading models from OpenAI, Meta, and Google at a fraction of the cost. This development has significantly impacted Nvidia, causing a historic drop in its market cap, as DeepSeek's models reportedly do not require powerful Nvidia hardware. The R1 model's efficiency and low training costs have led to widespread concern in the tech and finance sectors, with companies like Microsoft quickly integrating DeepSeek's technology into their platforms.

The rise of DeepSeek has also sparked geopolitical tensions, with a bipartisan bill in the US seeking to ban the AI chatbot from government devices, similar to previous actions against TikTok. Additionally, security concerns have been raised after a database exposure incident. Despite these challenges, DeepSeek's models have gained popularity, topping app store charts and prompting responses from industry leaders like OpenAI and Meta, who acknowledge the competitive threat posed by the startup's innovative approach.

Key takeaways:

  • DeepSeek's AI models have disrupted the market by offering competitive performance at a significantly lower cost, impacting companies like Nvidia.
  • Microsoft has quickly embraced DeepSeek's R1 model, integrating it into Azure AI Foundry and GitHub.
  • DeepSeek's AI app has become the most downloaded free app on Apple's App Store, surpassing OpenAI's ChatGPT.
  • There are concerns about data security and potential misuse of OpenAI's data by DeepSeek.
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