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Global AI Turmoil! How Did China's Dark Horse DeepSeek Crash the US Tech Stocks?

2025-03-04

Global AI Turmoil! How Did China's Dark Horse DeepSeek Crash the US Tech Stocks?

I. What Exactly is DeepSeek?

DeepSeek, with its Chinese name "深度求索" (Shen Du Qiu Suo), is meticulously developed by Hangzhou DeepSeek Artificial Intelligence

 Basic Technology Research Co., Ltd. Judging from its name, "DeepSeek" combines the meanings of "deep thinking" (Deep) and "exploration"

 (Seek), profoundly reflecting its grand vision of exploring unknown fields through deep learning technology. In simple terms, DeepSeek is 

committed to enabling machines to possess the ability to think and learn like humans, rather than merely executing simple instructions.

Its core is an extremely powerful language model with excellent natural language processing capabilities. Whether it is answering complex 

questions, creating high-quality articles, or carrying out difficult reasoning tasks, DeepSeek can handle various challenges with ease.

II. How Powerful is DeepSeek?

(I) Breaking the Traditional Balance between Cost and Performance

In the research and development of AI models, cost and performance often form a pair of contradictory factors that are difficult to balance. 

However, DeepSeek has achieved astonishing breakthroughs in this regard. The models it has developed are on par with the top AI models

 in the United States in terms of performance. Remarkably, the research and development costs are incredibly low. Taking the DeepSeek-R1 

model as an example, its training cost is only $5.6 million, which is worlds apart from the investments of hundreds of millions or even billions

 of dollars made by US tech giants. This low-cost and high-efficiency R&D model is like a powerful bombshell, directly posing a strong challenge

 to the artificial intelligence development model in the United States that relies on high computing power and high capital.

(II) Free Open Source to Promote Global Technology Inclusiveness

DeepSeek not only performs outstandingly in terms of cost and performance but also, with great foresight, adopts a free open source strategy,

 allowing developers worldwide to freely download and use its technology. This initiative has had far-reaching impacts. On the one hand, it 

has greatly accelerated the popularization of AI technology globally, enabling more people to access and utilize advanced AI technology. On 

the other hand, it has effectively weakened the long-standing monopoly of the United States in the AI technology field and injected strong

 impetus into the diversified development of global AI technology.

(III) Triggering Severe Turbulence in the US Tech Stock Market

The sudden rise of DeepSeek is like a strong storm, causing a huge impact on the US tech stock market. Affected by it, the stock price of NVIDIA,

 a giant in the US chip industry, once plummeted by 17%, Broadcom dropped by 17%, AMD declined by 6%, and Microsoft fell by 2%. The 

significant decline in the stock prices of these tech giants fully demonstrates the market's high level of concern about DeepSeek's strong 

competitiveness. It also, from the side, reflects the unprecedented challenge that DeepSeek poses to the "dominant position" of the US tech industry.

(IV) Surpassing ChatGPT and Reaching the Top of the App Download Rankings

In the Apple App Store, DeepSeek's application has successfully surpassed ChatGPT, which the United States takes pride in, and has ascended 

to the throne of the number one free application. It should be noted that ChatGPT previously enjoyed great popularity in the AI world and had

 always occupied a leading position, being regarded as the overload in the AI field. The fact that DeepSeek can surpass it is sufficient proof of 

its strong advantages in aspects such as user experience and functional features. It further highlights DeepSeek's extremely high popularity and

 wide recognition globally.

(V) Triggering Global Attention and Industry Transformation

DeepSeek's excellent performance has triggered extensive attention and in-depth discussions on a global scale. Many industry experts and 

tech practitioners have conducted research and analysis on it, believing that its emergence will propel the entire AI industry into a brand-new

 development stage. Many enterprises have begun to re-examine their own AI development strategies, thinking about how to draw on 

DeepSeek's successful experience to improve model performance while reducing costs, so as to gain a foothold in the fierce market competition.

 It can be said that DeepSeek is leading a transformation in the AI industry, bringing new ideas and directions for the development of the industry.