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AI Market Dynamics and Startups
This chapter examines a $600 billion market loss induced by the rise of Deep Seek, a competitive AI application from China, and discusses its impact on established companies. It emphasizes the challenges startups face in accessing computing power due to the dominance of industry giants, while advocating for government intervention to foster innovation. The chapter also touches upon the broader implications of these developments on the U.S. position in the global AI race and the necessity of equitable resource distribution.