China’s AI Breakthrough, Powerful Winter Storm & Egg Shortages- Tuesday, January 28, 2025

AI Breakthroughs Reshape Tech Landscape

A small Chinese artificial intelligence startup, DeepSeek, has made significant waves in the tech industry after launching an AI model that rivals leading chatbots from American companies like OpenAI and Google. The rapid ascent of DeepSeek's AI assistant to the top of the Apple App Store has caused a considerable sell-off in the U.S. stock market, particularly impacting NVIDIA, which saw nearly a 17% drop in shares, resulting in a staggering market cap loss of about $600 billion. Notably, while American tech firms rely on thousands of chips for training, DeepSeek claims to achieve similar results with only 2,000, indicating a more cost-effective solution. This development has prompted U.S. leaders to reconsider their competitive strategies in the global AI landscape, signaling that significant adjustments may be necessary to retain technological dominance.