The app's founder, Liang Wenfeng, strategically stockpiled Nvidia A100 chips before US export restrictions, combining them with affordable hardware to maintain performance while cutting costs. This approach has fueled DeepSeek's adoption and raised questions about the sustainability of high-cost AI projects in the US. The emergence of DeepSeek highlights a growing trend in China towards collaborative AI development, reducing reliance on cutting-edge hardware. While US firms are investing heavily in AI infrastructure to maintain leadership, DeepSeek's rise underscores the ongoing competition in the AI industry and the potential for innovation from unexpected sources.
Key takeaways:
- DeepSeek, a Chinese AI app, has surpassed ChatGPT as the most downloaded app in the US, causing stock market disruptions.
- DeepSeek's success is attributed to its cost-effective development, reportedly under $6 million, and its open-source foundation, DeepSeek-V3.
- The app's rise has led to declines in shares of major US tech companies like Nvidia, Microsoft, and Meta, as well as European firms like ASML and Siemens Energy.
- DeepSeek's founder, Liang Wenfeng, strategically stockpiled Nvidia A100 chips before US export restrictions, enabling cost-efficient performance.