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Home.forex news reportChina's AI App Shaking Up US Markets

China’s AI App Shaking Up US Markets

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In a new turn of events, a Chinese AI chatbot has not
only outpaced its American rivals but also sent shockwaves through global
markets. DeepSeek, a low-cost AI app, has risen to the top of
the US App Store charts, unsettling major technology firms and challenging
long-held assumptions about the future of artificial intelligence.

Launched just weeks ago, DeepSeek has already
surpassed ChatGPT as the most downloaded app in the US. The app’s success lies
in its ability to match the performance of leading AI models while reportedly
being developed for under $6 million, a fraction of the billions spent by its
competitors, Reuters reported.

Its open-source foundation, DeepSeek-V3, has sparked
debate about the cost efficiency and scalability of AI development. Analysts
warn that this could reshape the competitive dynamics of the AI industry,
especially as US companies have heavily invested in more expensive
infrastructure.

DeepSeek’s emergence has rattled stock markets. Shares
of US tech giants Nvidia, Microsoft, and Meta tumbled, while European companies
like ASML and Siemens Energy reportedly faced double-digit declines.

Wall Street giant Citi, however, highlighted the
challenges Chinese firms face, including limited access to advanced US chips,
which could slow their momentum, according to the BBC. DeepSeek’s success stems from innovative strategies by
its founder, Liang Wenfeng, who stockpiled Nvidia A100 chips before US export
restrictions took effect.

By combining these with more affordable hardware,
Liang managed to cut costs without compromising on performance. This efficiency
has fueled the app’s rapid adoption and raised questions about the
sustainability of high-cost AI projects in the US.

Technology and Strategy Behind DeepSeek

There is reportedly a growing trend in China where
developers have adopted collaborative approaches to AI, reducing reliance on
cutting-edge hardware.

DeepSeek’s popularity underscores the growing
challenge to US dominance in AI innovation. As Washington tightens restrictions
on advanced chip exports, Chinese developers continue to find workarounds, reportedly leveraging shared knowledge and low-cost solutions to compete globally.

While DeepSeek’s rise has unsettled markets and
investors, its long-term impact remains uncertain. US firms are already
responding, with a $500 billion investment in AI infrastructure through The
Stargate Project, which could reinforce American leadership in the field.

For now, however, DeepSeek stands as a stark reminder
that the AI race is far from over—and that innovation can come from unexpected
places.

In a new turn of events, a Chinese AI chatbot has not
only outpaced its American rivals but also sent shockwaves through global
markets. DeepSeek, a low-cost AI app, has risen to the top of
the US App Store charts, unsettling major technology firms and challenging
long-held assumptions about the future of artificial intelligence.

Launched just weeks ago, DeepSeek has already
surpassed ChatGPT as the most downloaded app in the US. The app’s success lies
in its ability to match the performance of leading AI models while reportedly
being developed for under $6 million, a fraction of the billions spent by its
competitors, Reuters reported.

Its open-source foundation, DeepSeek-V3, has sparked
debate about the cost efficiency and scalability of AI development. Analysts
warn that this could reshape the competitive dynamics of the AI industry,
especially as US companies have heavily invested in more expensive
infrastructure.

DeepSeek’s emergence has rattled stock markets. Shares
of US tech giants Nvidia, Microsoft, and Meta tumbled, while European companies
like ASML and Siemens Energy reportedly faced double-digit declines.

Wall Street giant Citi, however, highlighted the
challenges Chinese firms face, including limited access to advanced US chips,
which could slow their momentum, according to the BBC. DeepSeek’s success stems from innovative strategies by
its founder, Liang Wenfeng, who stockpiled Nvidia A100 chips before US export
restrictions took effect.

By combining these with more affordable hardware,
Liang managed to cut costs without compromising on performance. This efficiency
has fueled the app’s rapid adoption and raised questions about the
sustainability of high-cost AI projects in the US.

Technology and Strategy Behind DeepSeek

There is reportedly a growing trend in China where
developers have adopted collaborative approaches to AI, reducing reliance on
cutting-edge hardware.

DeepSeek’s popularity underscores the growing
challenge to US dominance in AI innovation. As Washington tightens restrictions
on advanced chip exports, Chinese developers continue to find workarounds, reportedly leveraging shared knowledge and low-cost solutions to compete globally.

While DeepSeek’s rise has unsettled markets and
investors, its long-term impact remains uncertain. US firms are already
responding, with a $500 billion investment in AI infrastructure through The
Stargate Project, which could reinforce American leadership in the field.

For now, however, DeepSeek stands as a stark reminder
that the AI race is far from over—and that innovation can come from unexpected
places.





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