Geopolitical Economy Report China's shocking DeepSeek AI pops US Big Tech monopoly bubble
Jan 29, 2025
A Chinese company, DeepSeek, has disrupted the tech landscape with its impressive open-source AI model, challenging the dominance of U.S. Big Tech. This development triggered a wave of stock market declines in the U.S. as concerns about a tech bubble emerge. The U.S. government's reaction includes attempts to ban this competition under the guise of national security, raising questions about the tech war on China. The discussion also delves into myths around China's innovation capabilities and examines the influence of billionaire oligarchs on U.S. policy.
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DeepSeek's Disruption
- DeepSeek, a small Chinese company, developed an AI model surpassing OpenAI's.
- This caused US tech stocks to crash, shaking investor confidence in "American exceptionalism."
Big Tech Bubble
- The US stock market, especially Big Tech, is in a massive bubble.
- The "Magnificent Seven" tech companies disproportionately influence major US stock indices.
Big Tech and Politics
- Trump's administration showcased Big Tech's influence by inviting billionaires to key meetings.
- These billionaires, including Musk, Bezos, and Zuckerberg, hold immense wealth and political sway.