ABC News Daily Why China’s DeepSeek AI freaked out Wall Street
Jan 28, 2025
Michael Blumenstein, a Professor at the Australian Artificial Intelligence Institute, discusses the seismic shock caused by China's DeepSeek AI chatbot launch. This newcomer has managed to outpace rivals with lower costs and fewer resources, stirring panic on Wall Street and affecting tech stock values. Blumenstein explores how DeepSeek's unique software approach could redefine market dynamics and challenge established players. He also highlights its impressive performance in app downloads and the global implications of China's rising presence in the AI landscape.
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DeepSeek's Impact
- DeepSeek's success shocked Wall Street, causing tech stocks like NVIDIA to tumble.
- NVIDIA's share price dropped 17%, losing almost $1 trillion in value.
NVIDIA's Role
- NVIDIA is the leading producer of chips crucial for AI processing.
- The demand for these chips skyrocketed with the AI revolution.
DeepSeek's Rise
- DeepSeek's AI chatbot became the most downloaded app, causing market concern.
- This is because it claims to use fewer chip resources than competitors.