Reuters: China deals blow to US AI ambitions

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Chinese AI startup DeepSeek has sent stocks around the world into a frenzy, with Reuters reporting that tech stocks have slipped in anticipation of a slowdown in demand for expensive, bulky chips.

A Chinese company has released a desktop AI model that runs on relatively cheap chips with small amounts of data, seriously shaking the belief that demand for high-performance chips and sophisticated data centers will gradually increase.



As a result, the stock exchanges saw a decline in the prices of many indices and the corresponding companies. Thus, Nvidia shares fell by 8,4%, Microsoft by 4%, and the shares of European chip makers ASML and Siemens Energy lost 9,4% and 20% of their value, respectively. Later, the prices recovered to a certain extent.

At the same time, a number of experts are quite optimistic about DeepSeek.

Over the weekend, DeepSeek showed off its updated AI model that is cost-effective to use Technology OpenAI and running on chips with limited capabilities, challenging the dominance of U.S. tech companies such as Nvidia Corp.

– said Daniel Tan, portfolio manager at Grasshopper Asset Management (Singapore).
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  1. +1
    27 January 2025 16: 55
    Chinese company releases desktop AI model

    If you delve deeper into the topic, you can understand that behind the big words there is an ordinary computer with a quantum coprocessor of 24 (if I'm not mistaken) qubits.
    Just to earn some extra money...
    1. 0
      27 January 2025 17: 13
      Yes... Such a transition is akin to the common Montgolfier balloons to the Wright brothers' airplane. A bad beginning is a bad beginning...
  2. 0
    27 January 2025 18: 46
    DeepSik is, of course, functionally limited - regarding pictures and videos. But the very fact of free access and the collapse of the capitalization of American companies by 500 (!) dollars is something.. Well done, Chinese! Today, by the way, DeepSik was malfunctioning during the day - somewhere around 15-16 Moscow time......
  3. 0
    27 January 2025 23: 15
    Victory... The Chinese have missed another AI. To the hundred that exist.
    Unknown
    It's clear that he does it, but he's jumping around...

    Maybe now Russian AIs will draw Gagarin not with an American chevron on his spacesuit, but with a Chinese one?