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Chinese AI Chatbot Deepseek has displaced Openai’s Chatgpt as the most downloaded app on the Apple App Store and the market is panicked. Shares for major AI -connected companies like NVIDIA dropped Monday morning after the news.
Deepseek released his R1 chat in late December and it only took the program about a month to claim its location at the top of the App Store. To the news that it reached the peak, stock prices for GPU manufacturer Nvidia fell 11%, Oracle fell 8%, and Palantir down 5%(Cramer Effect). Shares adapt to the revelation that China can build a faster, cheaper, and as well as the United States.
The reason the market is flowing is because DeepSEEK-R1 took two months Building, cost $ 6 million, and was trained using cheaper and lower NVIDIA H800 GPUs. It is also an open source so anyone can go to GitHub now, to separate it, and Tinker with it.
When it comes to training AI models, Silicon Valley has always said that bigger and more expensive is better. Sam Altman, Openai’s Director General, seems to believe that he is building some kind of word God on earth called to act and that the construction of this animal would require massive resources. Openai’s business models are required to sacrifice the present to build a terrible future in its own image.
Openai said it needed to steal everyone’s creative production on the planet to refine their models and that it can’t afford them for it. It would need to build extensive data centers to process information powered by new nuclear power plants. Meta, anthropic, and other companies invest billions to build infrastructure to operate AI with the hope of massive returns and future facilitated and simpler for technological billionaires.
SoftBank and Openai got together with President Trump to announce Stargate$ 500 billion AI initiative. The United States passed the ChIPS law to ensure that China did not acquire the most advanced GPUs and could not build as fast as the United States. Silicon Valley’s AI waves intended to spend billions to rebuild pieces of the country and, they hoped, change the way the United States worked.
Six million dollars. Two months. Nvidia H800 SHM5S. This is all that was taken to question this dream of the future.
“To see the new model Deepseek, it’s very impressive as much as they really made an open source model that makes this inference-time computer, and is super-computer,” Satya Nadella, Director General and Openai Business Partner said at Davos last week. “We need to take the developments from China very seriously.”
