What is Deepseek? Why the latest artificial intelligence model in China is terrifying Wall Street and Silicon Valley

Wall Street and Silicon Valley were shocked on Monday for the growing fear for Deepseek – a Chinese artificial intelligence startup that claims to have developed an advanced model with a faction of its American counterparts.

Nvidia shares and other major technology giants lost more than $ 1 trillion in market value while investors analyzed the details. Deepseek claims to build his own artificial intelligence model in a few months for just $ 6 million, overturning expectations in an industry that has predicted hundreds of billions of dollars for chips and other infrastructure.

Deepseek immediately climbed to the top of the tables on Apple’s App Store over the weekend – replacing Openai’s chatgt and other competitors. Rapid growth has sparked panic that the US may lose its advantage to China.

Here’s what you need to know about Deepseek:

What is Deepseek?

Deepseek was founded in May 2023. Center in Hangzhou, China, the company develops open -sourced models, which means they are easily accessible to the public and any developer can use it.

When was Deepseek’s model published?

Deepseek posted details earlier this month on R1, the reasoning model that supports his chatbot. The artificial intelligence firm returned to Silicon Valley with a research document explaining how he built the model.

Deepseek says the model excels in problem solving despite being much cheaper to train and run than its rivals.

Is Deepseek better than chatgpt?

Deepseek claims that the performance of its R1 model is “at the same level” as the last release by Openai.

Alexandr Wang, CEO I Scale He, recently told CNBC that Deepseek is “with the best performance, or at approximately the same level as the best American models”.

Who owns Deepseek?

Deepseek’s main shareholder is Liang Wenfeng, which runs the Chinese Defense Fund of $ 8 billion. High-Flyer has an office in the same building as its headquarters, according to Chinese corporate data obtained from Reuters.

Is Deepseek included in censorship?

He has already faced charges of rampant censorship in accordance with the preferences of the Chinese Communist Party.

Deepseek acknowledged that “the basis of his programming and knowledge have been created to pursue China’s laws and regulations, as well as essential socialist values”, according to an article posted on the elected Committee of the US Representative House for China.

Chatbot self -centered his responses when asked about China leader Xi Jinping, the 1989 Tiananmen Square massacre, human rights abuses from China to the Warry in its Xinjiang province and if Taiwan is a place, according to examples circulating on social media.

Is Deepseek publicly traded?

Deepseek is a private startup and is not publicly traded in the US.

Is Deepseek a threat to Nvidia?

Nvidia shares fell by 17% in Monday’s trading due to DEEPSEEK -related panic, wiping more than $ 600 billion in value from its market capital. However, the long -term threat posed by Deepseek’s success to Nvidia’s business model remains to be seen.

For example, analysts in Citi said access to advanced computer chips, such as those produced by Nvidia, will remain a major obstacle to the entry into it. Wedbush analyst Dan Iva described the chaos about the launch of Deepseek as a “purchase opportunity.

Nvidia is also highly involved in the Stargate artificial intelligence infrastructure project of $ 500 billion of President Trump.

Nvidia bulls have pointed out that Deepseek still used his chips to train the model, though with a less expensive footprint than previously thought.