US tech stocks plummet after Chinese AI app Deepseek’s debut | ABC NEWS

Technology stocks have sharply declined following the unexpected release of a Chinese-developed chatbot, Deep Seek, which offers capabilities comparable to market leader OpenAI's models. This app, which became the most downloaded free application in the U.S., was developed without access to advanced NVIDIA chips and at a fraction of the cost of Western equivalents. The sudden competitiveness of Chinese AI technology has raised concerns regarding the extent of the lead the U.S. holds in AI, subsequently impacting the stock valuations of major tech companies like NVIDIA and Microsoft.

Deep Seek, an AI app from China, disrupts Silicon Valley's dominance.

Deep Seek was trained without high-end NVIDIA chips, demonstrating cost-effective AI.

U.S. restrictions on chip exports raise questions about America's AI leadership.

China's investments in AI manufacturing challenge U.S. technological supremacy.

AI Expert Commentary about this Video

AI Governance Expert

The rapid advancement of AI technology in China, coupled with the development of Deep Seek, poses significant implications for U.S. AI governance. This shift challenges existing regulatory frameworks that may not adequately address the competitive landscape or the ethical considerations of deploying AI technologies globally.

AI Market Analyst Expert

The emergence of Deep Seek reflects a critical pivot in market expectations, suggesting that high-performance AI does not solely depend on advanced hardware. Investors must reevaluate the long-term viability of companies like NVIDIA in light of more cost-effective AI solutions emerging from competitors, particularly in China.

Key AI Terms Mentioned in this Video

Artificial Intelligence

The video discusses the competitive landscape of AI technology between the U.S. and China.

Deep Seek

Deep Seek's success highlights the shifting dynamics in the global AI market.

NVIDIA

NVIDIA's stock performance is adversely affected by the emergence of Deep Seek, challenging its market position.

Companies Mentioned in this Video

NVIDIA

The video notes its role in AI chip manufacturing and how recent events have caused a significant drop in its stock value.

Mentions: 6

OpenAI

The comparison with Deep Seek in terms of capabilities underscores the competitive pressure in the AI sector.

Mentions: 2

Company Mentioned:

Industry:

Technologies:

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