#Liang Wenfeng

[rightnewshindi]

कौन है DeepSeek के संस्थापक लियांग वेनफेंग, जानें क्या थी 4 साल पुरानी जिद; जिसने AI की दुनिया में मचाई सनसनी

#News कौन है DeepSeek के संस्थापक लियांग वेनफेंग, जानें क्या थी 4 साल पुरानी जिद; जिसने AI की दुनिया में मचाई सनसनी

DeepSeek AI: 40 वर्षीय लियांग वेनफेंग चीनी AI स्टार्टअप DeepSeek के संस्थापक हैं। वही इस कंपनी के सीईओ भी हैं। उनका जन्म चीन के झानजियांग में हुआ था। उनके पिता प्राथमिक विद्यालय के शिक्षक थे। लियांग बहुत ही साधारण परिवार से ताल्लुक रखते हैं। उनकी प्रारंभिक शिक्षा भी साधारण स्कूल में ही हुई है लेकिन वह बचपन से ही मेधावी रहे हैं। सीखने के मामले में बहुत ही जुनूनी रहे हैं। इसी जुनून की बदौलत आज वह…

[miloalli14]

nvidia stock

[babyenemychild]

Why the Chiefs’ Chris Jones Was Crying on the Sidelines During Their AFC Championship Win

READ MORE

[justforbooks]

The DeepSeek panic reveals an AI world ready to blow❗💥

The R1 chatbot has sent the tech world spinning – but this tells us less about China than it does about western neuroses

The arrival of DeepSeek R1, an AI language model built by the Chinese AI lab DeepSeek, has been nothing less than seismic. The system only launched last week, but already the app has shot to the top of download charts, sparked a $1tn (£800bn) sell-off of tech stocks, and elicited apocalyptic commentary in Silicon Valley. The simplest take on R1 is correct: it’s an AI system equal in capability to state-of-the-art US models that was built on a shoestring budget, thus demonstrating Chinese technological prowess. But the big lesson is perhaps not what DeepSeek R1 reveals about China, but about western neuroses surrounding AI.

For AI obsessives, the arrival of R1 was not a total shock. DeepSeek was founded in 2023 as a subsidiary of the Chinese hedge fund High-Flyer, which focuses on data-heavy financial analysis – a field that demands similar skills to top-end AI research. Its subsidiary lab quickly started producing innovative papers, and CEO Liang Wenfeng told interviewers last November that the work was motivated not by profit but “passion and curiosity”.

This approach has paid off, and last December the company launched DeepSeek-V3, a predecessor of R1 with the same appealing qualities of high performance and low cost. Like ChatGPT, V3 and R1 are large language models (LLMs): chatbots that can be put to a huge variety of uses, from copywriting to coding. Leading AI researcher Andrej Karpathy spotted the company’s potential last year, commenting on the launch of V3: “DeepSeek (Chinese AI co) making it look easy today with an open weights release of a frontier-grade LLM trained on a joke of a budget.” (That quoted budget was $6m – hardly pocket change, but orders of magnitude less than the $100m-plus needed to train OpenAI’s GPT-4 in 2023.)

R1’s impact has been far greater for a few different reasons.

First, it’s what’s known as a “chain of thought” model, which means that when you give it a query, it talks itself through the answer: a simple trick that hugely improves response quality. This has not only made R1 directly comparable to OpenAI’s o1 model (another chain of thought system whose performance R1 rivals) but boosted its ability to answer maths and coding queries – problems that AI experts value highly. Also, R1 is much more accessible. Not only is it free to use via the app (as opposed to the $20 a month you have to pay OpenAI to talk to o1) but it’s totally free for developers to download and implement into their businesses. All of this has meant that R1’s performance has been easier to appreciate, just as ChatGPT’s chat interface made existing AI smarts accessible for the first time in 2022.

Second, the method of R1’s creation undermines Silicon Valley’s current approach to AI. The dominant paradigm in the US is to scale up existing models by simply adding more data and more computing power to achieve greater performance. It’s this approach that has led to huge increases in energy demands for the sector and tied tech companies to politicians. The bill for developing AI is so huge that techies now want to leverage state financing and infrastructure, while politicians want to buy their loyalty and be seen supporting growing companies. (See, for example, Trump’s $500bn “Stargate” announcement earlier this month.) R1 overturns the accepted wisdom that scaling is the way forward. The system is thought to be 95% cheaper than OpenAI’s o1 and uses one tenth of the computing power of another comparable LLM, Meta’s Llama 3.1 model. To achieve equivalent performance at a fraction of the budget is what’s truly shocking about R1, and it’s this that has made its launch so impactful. It suggests that US companies are throwing money away and can be beaten by more nimble competitors.

But after these baseline observations, it gets tricky to say exactly what R1 “means” for AI. Some are arguing that R1’s launch shows we’re overvaluing companies like Nvidia, which makes the chips integral to the scaling paradigm. But it’s also possible the opposite is true: that R1 shows AI services will fall in price and demand will, therefore, increase (an economic effect known as Jevons paradox, which Microsoft CEO Satya Nadella helpfully shared a link to on Monday). Similarly, you might argue that R1’s launch shows the failure of US policy to limit Chinese tech development via export controls on chips. But, as AI policy researcher Lennart Heim has argued, export controls take time to work and affect not just AI training but deployment across the economy. So, even if export controls don’t stop the launches of flagships systems like R1, they might still help the US retain its technological lead (if that’s the outcome you want).

All of this is to say that the exact effects of R1’s launch are impossible to predict. There are too many complicating factors and too many unknowns to say what the future holds. However, that hasn’t stopped the tech world and markets reacting in a frenzy, with CEOs panicking, stock prices cratering, and analysts scrambling to revise predictions for the sector. And what this really shows is that the world of AI is febrile, unpredictable and overly reactive. This a dangerous combination, and if R1 doesn’t cause a destructive meltdown of this system, it’s likely that some future launch will.

Daily inspiration. Discover more photos at Just for Books…?

[thursdayisbetterthanfriday]

Cybernetics with Chinese Characteristics & why we suck at the real Grand Strategy Game

Part 2 - The Quickening

Back in 2023, I wrote this more blog-like post about the mid 20th century McCarthyite purges of the Jet Propulsion Laboratory and the knock on effects that had - Namely the inception of the Chinese nuclear program, one-child policy and Chinese computing scene.

Since nothing is new under the sun, we have recently witnessed yet another example of America shooting itself in the foot, yet again, due to it's McCarthyite style purge of Chinese technology.

The release of the Chinese created AI system DeepSeek R1 last week has lead to the largest US stock market loss in history with NVIDIA stock decimated.

A record $465 Billion was wiped off its valuation in a single day. In 2024, the government of Turkey spent this much in a year on it's responsibilities?

Why did this happen?

As always, a lot can be put down to US foreign policy, and the in-intended implications of seemingly positive actions.

Do you want to start a trade war?

Back in the relatively uncontroversial days of the first Trump Presidency (Yes it does feel odd saying that) there were scandals with hardware provided by Chinese company Huawei. This led to the  National Defense Authorization Act for Fiscal Year 2019 which explicitly banned Huawei and ZTE's hardware from use in US Government institutions. It also meant the US had to authorise US component manufacturer purchases by these companies.

Crucially this had a 27 month window. This allowed both companies to switch suppliers, and production to domestic suppliers. This actually led to Chinese chip advances. Following on from this came the 2022 move by the US Department of Commerce: "Commerce Implements New Export Controls on Advanced Computing and Semiconductor Manufacturing Items to the People’s Republic of China (PRC) ". This further limited the supply of semiconductor, supercomputer, and similar hardware to the PRC and associated countries.

Ok, well so far this is fairly dry stuff. You might think it would hamper Chinese development and, to some extent, it did.

It also proved to be the main catalyst for one financial quant.

Meet the Quant

Meet Liang Wenfeng (梁文锋). Educated to masters level, Liang was keen to apply machine learning methods to various field, but couldn't get a break. Finally, in the mid 2000's, he settled on a career investigating quantitative trading using machine learning techniques.

He became successful, founding several trading firms based around using machine learning methods, but his interest in base AI never seemed to cease. It was in 2021 that he started purchasing multiple NVIDIA GPUs to create a side project, leading to the creation of DeepSeek in 2023.

Now, due to import limitations, there were limitations on computation. This, however, did not stop DeepSeek's programming team.

Instead they used it as their strength.

Constrains Breed Innovation

For many years, the Western model of AI releases have focussed on making ever larger and larger models.

Why?

Let's break this down from an evolutionary point of view. Modern Western technology companies are largely monopolistic and monolithic. Many of these companies have previously hired staff at higher salaries not to fill roles, but to deny their competitors, and middle market firms, high-flying staff.

They also closely guard trade secrets. What's the training data? What algorithms were used in construction? Guess you'd better chat up some Silicon Valley bros at parties to find out.

For these kinds of firms, having control over large models, housed in data centres makes perfect sense. Controlling model deployment on their own computing systems, and not using local machines, means that they can not only control their systems more carefully, it also means that they can gatekeep access.

If your business model is to allow people to access your models on your servers, and your employees are focussed on making the biggest, best, models, there is no impetus to innovate more efficient, smaller models.

Companies such as OpenAI therefore have the following traits:

Research/Model focus on size over efficiency

Profit driven culture, with emphasis on closed source code

OpenAI's initial focus was as a non-for-profit developing Artificial General Intelligence. This became a for-profit driven company over time. - “I personally chose the price and thought we would make some money.” - Sam Altman

Staff working within paradigm they set in the early 2020's with established code libraries and direct contact with hardware companies creating chips

Significant capital investment - Upwards of several $ billions

DeepSeek, in comparison, is slightly different

For DeepSeek, necessity made innovation necessary. In order to create similar, or better models, than their counterparts, they needed to significantly optimise their code. This requires significantly more work to create, and write, libraries compared to OpenAI.

DeepSeek was started by financial quants, with backgrounds in mainly mathematics and AI. With a focus on mathematics and research, the main drive of many in the company has been exploration of the research space over concerns about profitability.

DeepSeek has also done what OpenAI stopped years ago: actually releasing the code and data for their models. Not only can these models therefore be run via their own gated servers, anyone can replicate their work and make their own system.

For DeepSeek, their traits were:

Research/Model focus on both efficiency and accuracy

Research driven culture, with open nature - “Basic science research rarely offers high returns on investment” - Liang Wenfeng

Strong mathematical background of staff, with ability to work around software, and hardware, constraints

Low capital investment of around $5.5 million

From an evolutionary point of view, DeepSeek's traits have outcompeted those of OpenAI.

More efficient models cost less to run. They also more portable to local machines.

The strong ability of DeepSeek's research focussed staff allowed them to innovate around hardware constraints

Opening up the code to everyone allows anyone (still with the right hardware) to make their own version.

To top it off, the cost to make, and run, DeepSeek R1 is a fraction of the cost of OpenAI's model

House of Cards

Now we can return to today. NVIDIA has lost significant market value. It's not just limited to NVIDIA, but to the entire US technology sector with the most AI adjacent companies losing from 10% to 30% of their valuation in a single day.

The culture, and business model, of OpenAI isn't just limited to OpenAI, but to the entire US technology ecosystem. The US model has been to create rentier-style financial instruments at sky-high valuations.

US tech stocks have been one of the only success stories for America over the past few decades, ever since the offshoring of many manufacturing industries. Like a lost long-unemployed Detroit auto-worker the US has been mainlining technology like Fentanyl, ignoring the anti-trust doctors advice, injecting pure deregulated substances into its veins.

The new AI boom? A new stronger hit, ready for Wall Street, and Private Equity to tie the tourniquet around its arm and pump it right into the arteries.

Like Prometheus, DeepSeek has delved deep and retrieved fire from the algorithmic gods, and shown it's creation to the world. The stock market is on fire, as the traders are coming off of their high, realising they still live in the ruin of barren, decrepit, warehouses and manufactories. The corporate heads, and company leaders reigning over the wreckage like feudal lords, collecting tithes from the serfs working their domain.

A Tale of Two Cities

The rise of DeepSeek isn't just a one-off story of derring-do in the AI world: It's a symbolic representation of the changing world order. DeepSeek is but one company among many who are outcompeting the US, and the world, in innovation.

Where once US free-markets led the world in manufacturing, technology and military capability, now the US is a country devoid of coherent state regulated free-market principles - its place as the singular world power decimated by destroying the very systems which made it great.

"Our merchants and master-manufacturers complain much of the bad effects of high wages in raising the price, and thereby lessening the sale of their goods both at home and abroad. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people." - Adam Smith, The Wealth of Nations

By selling the jobs of working class communities to overseas businesses, destroying unions and creating rentier based business models without significant anti-trust measures, US business and political elites have sealed the present fate of the country.

The CCP led, but strongly anti-trust enforcing, China has been able to innovate, ironically, using the free-market principles of Adam Smith to rise up and create some of the world's best innovations. The factories, opened by Western business leaders to avoid union/worker labour costs in their own countries, have led Shenzhen, and similar cities, to become hubs of technological innovation - compounding their ability to determine the future of technologies across the world.

Will America be able to regain its position on top? It's too early to say, but the innovative, talented, people who made America in the 20th century can certainly do it again.

As Franklin D. Roosevelt once said: “The liberty of a democracy is not safe if the people tolerated the growth of private power to a point where it becomes stronger than the democratic state itself...

We know now that Government by organized money is just as dangerous as Government by organized mob.

Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me—and I welcome their hatred.”

Until then, here's a farewell to the American Century 在那之前, 再见美国世纪

[head-post]

Alibaba releases AI model allegedly superior to DeepSeek

Chinese technology company Alibaba released a new version of its artificial intelligence (AI) model Qwen 2.5, which it claimed outperformed the sensational DeepSeek-V3, according to Reuters.

The release of the new AI model came on the first day of the Lunar New Year. Alibaba’s cloud unit stated:

Qwen 2.5-Max outperforms … almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B.

The release of AI assistant DeepSeek, powered by DeepSeek-V3, on 10 January and the release of its R1 model on 20 January stunned Silicon Valley and triggered a plunge in tech stocks.

The low-cost startup led investors to question the huge spending plans for top AI companies in the United States. However, DeepSeek’s success also led to a battle among its domestic competitors to update their own AI models.

Two days after the release of DeepSeek-R1, TikTok owner ByteDance released an update to its flagship AI model, which it claimed surpassed the Microsoft-backed OpenAI o1.

The fact that DeepSeek-V2 was open source and unprecedentedly cheap led Alibaba’s cloud division to announce a price cut of up to 97 per cent on the range of models. Other Chinese tech companies followed suit, including Baidu, which launched China’s first ChatGPT analogue in March 2023, and the country’s most valuable internet company, Tencent.

Liang Wenfeng, the mysterious founder of DeepSeek, said last July that his project “did not care” about price wars and that achieving AGI (artificial general intelligence) was its main goal. While large Chinese tech companies such as Alibaba have hundreds of thousands of employees, DeepSeek operates as a research lab staffed mostly by young graduates and doctoral students from leading Chinese universities.

Large foundational models require continued innovation, tech giants’ capabilities have their limits.

Read more HERE

[darkmaga-returns]

1. Marc Andresseen:

Deepseek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, a profound gift to the world. (Sources: a16z.com, x.com)

2. Financial Times:

A small Chinese artificial intelligence lab stunned the world this week by revealing the technical recipe for its cutting-edge model, turning its reclusive leader into a national hero who has defied US attempts to stop China’s high-tech ambitions. DeepSeek, founded by hedge fund manager Liang Wenfeng, released its R1 model on Monday, explaining in a detailed paper how to build a large language model on a bootstrapped budget that can automatically learn and improve itself without human supervision. US companies including OpenAI and Google DeepMind pioneered developments in reasoning models, a relatively new field of AI research that is attempting to make models match human cognitive capabilities. In December, the San Francisco-based OpenAI released the full version of its o1 model but kept its methods secret. DeepSeek’s R1 release sparked a frenzied debate in Silicon Valley about whether better resourced US AI companies, including Meta and Anthropic, can defend their technical edge. (Source: ft.com)

3. The Wall Street Journal:

Specialists said DeepSeek’s technology still trails that of OpenAI and Google. But it is a close rival despite using fewer and less-advanced chips, and in some cases skipping steps that U.S. developers considered essential. DeepSeek said training one of its latest models cost $5.6 million, compared with the $100 million to $1 billion range cited last year by Dario Amodei, chief executive of the AI developer Anthropic, as the cost of building a model. Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek. “It’s very cool,” said Woodside, pointing to DeepSeek’s open-source models in which the software code behind the AI model is made available free.

[techverse1]

DeepSeek Shakes Up AI Industry, Challenging Silicon Valley’s Dominance

A little-known Chinese AI startup, DeepSeek, has disrupted the global tech landscape with the launch of its artificial intelligence model, DeepSeek-R1. The model’s capabilities rival those of industry leaders such as Google’s Gemini and OpenAI’s ChatGPT, raising questions about Silicon Valley’s long-held dominance in AI innovation.

A Cost-Effective AI Breakthrough

Unlike major US tech firms that invest billions in AI development, DeepSeek claims to have trained its model for under $6 million using fewer and less advanced computer chips. This stark contrast has led some experts to label its emergence as “AI’s Sputnik moment.”

DeepSeek’s impact is already being felt in the stock market. On Monday, Nvidia, a leading AI chip supplier, suffered a 17% drop in its shares, wiping out nearly $600 billion in market value. The stock prices of Google parent Alphabet and Microsoft also fell, reflecting investor uncertainty about the competitive landscape.

What is DeepSeek?

Founded in 2023 and based in Hangzhou, DeepSeek is led by Liang Wenfeng, a serial entrepreneur with a background in AI-driven financial investments. Liang, who previously founded multiple AI-focused hedge funds, has long believed that replicating AI models is relatively inexpensive, provided that research and innovation are prioritized.

In past interviews, Liang has emphasized his curiosity-driven approach to AI. He hypothesizes that human intelligence is fundamentally based on language and suggests that artificial general intelligence (AGI) could emerge from large language models.

A Disruptive AI Model

DeepSeek’s success challenges the assumption that large-scale AI models require billions of dollars and cutting-edge hardware. With a team of just 200 employees, the company used 2,000 Nvidia H800 chips—less advanced than those used by its US counterparts—to train its model efficiently.

By employing multiple specialized models to enhance computational efficiency, DeepSeek has demonstrated that high-performing AI can be built without access to the latest chip technology. This development has raised concerns about US efforts to contain China’s AI advancements by restricting chip exports.

The Global AI Race Intensifies

The release of DeepSeek-R1 has reignited debates about AI leadership. While OpenAI CEO Sam Altman acknowledged DeepSeek’s impressive capabilities, he reaffirmed his belief that computing power remains crucial for advancing AI. OpenAI plans to roll out its new reasoning AI model, o3 mini, in the coming weeks.

Meanwhile, some experts argue that US policymakers should focus on strengthening Silicon Valley’s AI ecosystem rather than attempting to suppress China’s progress. They point out that while OpenAI and other US firms have paywalled their most advanced models, DeepSeek has made its best model freely accessible, creating a perception of a significant leap in AI capabilities.

China’s AI Moment?

Though DeepSeek’s rapid ascent signals China’s growing AI prowess, analysts caution against declaring it the outright leader in the AI race. The field is evolving rapidly, and Silicon Valley’s tech giants remain formidable competitors. However, DeepSeek’s innovative approach demonstrates that AI breakthroughs can emerge from unexpected players, challenging long-standing industry assumptions.

The coming months will reveal whether DeepSeek’s disruptive model represents a lasting shift in AI development or a temporary shake-up in the competitive landscape.

[sandra-journals]

Global AI Power Struggle Heats Up at Paris Summit

World leaders, tech moguls, and AI experts are converging in Paris for a high-stakes summit that could redefine the future of artificial intelligence. The Artificial Intelligence Action Summit, set in the historic Grand Palais, brings together representatives from 80 countries to discuss AI’s rapid advancements and its growing influence on global power dynamics.

While the official agenda focuses on AI’s opportunities and risks, an undercurrent of competition is driving the discussions. China’s DeepSeek, an ultra-efficient AI model, has shifted the balance of AI supremacy, challenging the long-standing dominance of U.S. tech giants like OpenAI and Google. DeepSeek’s emergence has made China a formidable player, raising the stakes for Western companies and governments.

A New AI Battleground

European leaders, led by French President Emmanuel Macron, see the summit as a turning point for AI leadership. A French official described the event as a "wake-up call," emphasizing that Europe must seize the AI revolution rather than be left behind.

India’s Prime Minister Narendra Modi is making a rare appearance at the summit, underscoring the country’s ambitions in AI development. Meanwhile, the U.S. is sending heavyweights such as Vice President JD Vance, OpenAI CEO Sam Altman, and Google’s Sundar Pichai to reaffirm its leadership. However, the notable absence of British Prime Minister Keir Starmer signals shifting priorities in the UK’s AI strategy.

China is expected to have a prominent presence, with senior official Ding Xuexiang—a close ally of President Xi Jinping—reportedly attending. Speculation is also swirling around whether DeepSeek’s creator, Liang Wenfeng, will make an appearance.

Rethinking AI’s Future

The summit marks a shift from previous AI gatherings. The first AI safety-focused summit in the UK, held at Bletchley Park in 2023, emphasized minimizing risks associated with AI. While safety remains a concern, this summit leans more toward global AI dominance and economic competition.

Experts like Prof. Geoffrey Hinton warn of AI’s existential risks, from misinformation to potential AI-controlled warfare. Others, such as Prof. Max Tegmark, argue that humanity is closer to developing powerful AI than figuring out how to control it. The question remains whether world leaders will unite to implement safeguards or whether the race for AI dominance will escalate unchecked.

As discussions unfold in Paris, one thing is clear—AI is no longer just about innovation; it’s a geopolitical force shaping the future of global power.

[mohameddosou]

DeepSeek AI: The Catalyst Behind the $1 Trillion Stock Market Shake-Up - An Investigative Guide

Explore the inner workings of DeepSeek AI, the Chinese startup that disrupted global markets, leading to an unprecedented $1 trillion downturn. This guide provides a comprehensive analysis of its technology, the ensuing financial turmoil, and the future implications for AI in finance.

In early 2025, the financial world witnessed an unprecedented event: a sudden and dramatic downturn that erased over $1 trillion from the U.S. stock market. At the heart of this upheaval was DeepSeek AI, a relatively unknown Chinese startup that, within days, became a household name. This guide delves into the origins of DeepSeek AI, the mechanics of its groundbreaking technology, and the cascading effects that led to one of the most significant financial disruptions in recent history.

Origins and Founding

DeepSeek AI was founded by Liang Wenfeng, a young entrepreneur from Hangzhou, China. Inspired by the success of hedge fund manager Jim Simons, Wenfeng sought to revolutionize the financial industry through artificial intelligence. His vision culminated in the creation of the R1 reasoning model, a system designed to optimize trading strategies using advanced AI techniques.

Technological Framework

The R1 model employs a process known as “distillation,” which allows it to learn from other AI models and operate efficiently on less advanced hardware. This approach challenges traditional cloud-computing models by enabling high-performance AI operations on devices like standard laptops. Such efficiency not only reduces costs but also makes advanced AI accessible to a broader range of users.

Strategic Moves

Prior to the release of the R1 model, there was speculation that Wenfeng strategically shorted Nvidia stock, anticipating the disruptive impact his technology would have on the market. Additionally, concerns arose regarding the potential use of proprietary techniques from OpenAI without permission, raising ethical and legal questions about the development of R1.

Advantages of AI-Driven Trading

Artificial intelligence has transformed trading by enabling rapid data analysis, pattern recognition, and predictive modeling. AI-driven trading systems can execute complex strategies at speeds unattainable by human traders, leading to increased efficiency and the potential for higher returns.

Case Studies

Before the emergence of DeepSeek AI, several firms successfully integrated AI into their trading operations. For instance, Renaissance Technologies, founded by Jim Simons, utilized quantitative models to achieve remarkable returns. Similarly, firms like Two Sigma and D.E. Shaw employed AI algorithms to analyze vast datasets, informing their trading decisions and yielding significant profits.

Industry Perspectives

Industry leaders have acknowledged the transformative potential of AI in finance. Satya Nadella, CEO of Microsoft, noted that advancements in AI efficiency could drive greater adoption across various sectors, including finance. Venture capitalist Marc Andreessen highlighted the importance of AI models that can operate on less advanced hardware, emphasizing their potential to democratize access to advanced technologies.

Timeline of Events

The release of DeepSeek’s R1 model marked a pivotal moment in the financial markets. Investors, recognizing the model’s potential to disrupt existing AI paradigms, reacted swiftly. Nvidia, a leading supplier of high-end chips for AI applications, experienced a significant decline in its stock value, dropping 17% and erasing $593 billion in valuation.

Impact Assessment

The shockwaves from DeepSeek’s announcement extended beyond Nvidia. The tech sector as a whole faced a massive sell-off, with over $1 trillion wiped off U.S. tech stocks. Companies heavily invested in AI and related technologies saw their valuations plummet as investors reassessed the competitive landscape.

Global Repercussions

The market turmoil was not confined to the United States. Global markets felt the impact as well. The sudden shift in the AI landscape prompted a reevaluation of tech valuations worldwide, leading to increased volatility and uncertainty in international financial markets.

Technical Vulnerabilities

While the R1 model’s efficiency was lauded, it also exposed vulnerabilities inherent in AI-driven trading. The reliance on “distillation” techniques raised concerns about the robustness of the model’s decision-making processes, especially under volatile market conditions. Additionally, the potential use of proprietary techniques without authorization highlighted the risks associated with rapid AI development.

Systemic Risks

The DeepSeek incident underscored the systemic risks of overreliance on AI in financial markets. The rapid integration of AI technologies, without adequate regulatory frameworks, can lead to unforeseen consequences, including market disruptions and ethical dilemmas. The event highlighted the need for comprehensive oversight and risk management strategies in the deployment of AI-driven trading systems.

Regulatory Scrutiny

In the wake of the market crash, regulatory bodies worldwide initiated investigations into the events leading up to the downturn. The U.S. Securities and Exchange Commission (SEC) focused on potential market manipulation, particularly examining the rapid adoption of DeepSeek’s R1 model and its impact on stock valuations. Questions arose regarding the ethical implications of using “distillation” techniques, especially if proprietary models were utilized without explicit permission.

Corporate Responses

Major technology firms responded swiftly to the disruption. Nvidia, facing a significant decline in its stock value, emphasized its commitment to innovation and announced plans to develop more efficient chips to remain competitive. Companies like Microsoft and Amazon, recognizing the potential of DeepSeek’s technology, began exploring partnerships and integration opportunities, despite initial reservations about data security and geopolitical implications.

Public Perception and Media Coverage

The media played a crucial role in shaping public perception of DeepSeek and the ensuing market crash. While some outlets highlighted the technological advancements and potential benefits of democratizing AI, others focused on the risks associated with rapid technological adoption and the ethical concerns surrounding data security and intellectual property. The Guardian noted, “DeepSeek has ripped away AI’s veil of mystique. That’s the real reason the tech bros fear it.”

Redefining AI Development

DeepSeek’s emergence has prompted a reevaluation of AI development paradigms. The success of the R1 model demonstrated that high-performance AI could be achieved without reliance on top-tier hardware, challenging the prevailing notion that cutting-edge technology necessitates substantial financial and computational resources. This shift could lead to more inclusive and widespread AI adoption across various industries.

Geopolitical Considerations

The rise of a Chinese AI firm disrupting global markets has significant geopolitical implications. It underscores China’s growing influence in the technology sector and raises questions about the balance of power in AI innovation. Concerns about data security, intellectual property rights, and the potential for technology to be used as a tool for geopolitical leverage have come to the forefront, necessitating international dialogue and cooperation.

Ethical and Legal Frameworks

The DeepSeek incident highlights the urgent need for robust ethical and legal frameworks governing AI development and deployment. Issues such as the unauthorized use of proprietary models, data privacy, and the potential for market manipulation through AI-driven strategies must be addressed. Policymakers and industry leaders are called upon to establish guidelines that ensure responsible innovation while safeguarding public interest.

The story of DeepSeek AI serves as a pivotal case study in the complex interplay between technology, markets, and society. It illustrates both the transformative potential of innovation and the risks inherent in rapid technological advancement. As we move forward, it is imperative for stakeholders — including technologists, investors, regulators, and the public — to engage in informed dialogue and collaborative action. By doing so, we can harness the benefits of AI while mitigating its risks, ensuring a future where technology serves the greater good.

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DeepSeek’s success will undermine the US-China tech war

Stay informed with free updates Simply sign up to the Artificial intelligence myFT Digest — delivered directly to your inbox. The writer is a founding partner of Hong Kong-based VC firm IN. Capital DeepSeek has forever altered the trajectory of global rivalry in tech. In China, founder Liang Wenfeng has become a local champion. For a country where overseas degrees — especially those in the US —…

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DeepSeek complete explained: Everything you need to know 2025

DeepSeek, a Chinese AI firm, is shaking up the industry with its low-cost, open-source large language models, posing a serious challenge to U.S. tech giants.

Breaking the AI Norms

For years, the belief was that developing powerful large language models required massive funding and cutting-edge technology. That’s why the U.S. government pledged to back the $500 billion Stargate Project, announced by President Donald Trump.

But DeepSeek has flipped that idea on its head. On January 20, 2025, the Chinese AI firm stunned the world by releasing its R1 large language model (LLM) at a fraction of the cost of its competitors. What made it even more disruptive? DeepSeek offered its R1 models under an open-source license, making them freely available to the public.

Within days, DeepSeek’s AI assistant—an easy-to-use chatbot app powered by R1—shot to the top of Apple’s App Store, surpassing OpenAI’s ChatGPT in downloads. The ripple effect was immediate: On January 27, 2025, stock markets took a hit as investors started doubting the long-term dominance of U.S.-based AI companies. Tech giants like Nvidia, Microsoft, Meta, Oracle, and Broadcom saw their stock values plummet as the world took notice of DeepSeek’s rapid rise.

What is DeepSeek?

DeepSeek is an AI research company based in Hangzhou, China. It was founded in May 2023 by Liang Wenfeng, a graduate of Zhejiang University and co-founder of High-Flyer, a quantitative hedge fund that owns DeepSeek. While the company’s funding and valuation remain undisclosed, its impact on the AI landscape is undeniable.

DeepSeek is committed to developing open-source LLMs. Its first model debuted in November 2023, but it wasn’t until January 2025—with the release of the groundbreaking R1 reasoning model—that the company gained worldwide recognition.

The company offers multiple access points for its AI models, including a web platform, a mobile app, and an API for developers.

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US Tech Stocks Stabilize After DeepSeek AI App Disrupts Market

US Tech Stocks Stabilize After DeepSeek AI App Disrupts Market

US tech stocks held steady on Tuesday after experiencing a sharp decline on Monday, triggered by the unexpected rise of the Chinese-made artificial intelligence (AI) app, DeepSeek.

Shares of chip giant Nvidia, which had fallen sharply on Monday, rebounded by 8.8% as experts suggested the AI market selloff may have been an overreaction. Investors were quick to adjust their positions after DeepSeek claimed its AI model was developed at a fraction of the cost of its competitors' offerings.

The news sparked concerns over the future of America's AI dominance and raised questions about the scale of investments US companies are planning. US President Donald Trump described the situation as "a wake-up call" for the tech industry, while also suggesting that the development could ultimately be beneficial for the US economy. He remarked that if AI models could be produced more cheaply while delivering the same results, it would be a positive outcome for the country.

Trump downplayed concerns, emphasizing that the US would remain a key player in the AI field. The surge of optimism around AI investments has fueled much of the US stock market's growth over the past two years, prompting fears of a potential market bubble.

DeepSeek, launched just a week ago, quickly became the most downloaded free app in the US. Its rise comes amid ongoing tensions between the US and China over AI technology, with the US restricting the export of advanced AI chips to China.

Chinese AI developers, facing limited access to these chips, have shared research and explored alternative approaches that demand less computational power. This has led to the creation of AI models that are significantly cheaper to produce, challenging industry norms and threatening to disrupt the market.

Nvidia, the leading provider of advanced chips used in many AI applications, was hit hardest by the market selloff. Its share price dropped 17% on Monday, erasing nearly $600 billion from its market value.

Analysts, including Janet Mui of RBC Brewin Dolphin, explained that investors typically respond with caution to groundbreaking developments due to uncertainty. However, she noted that the cheaper AI models could benefit tech giants such as Apple and other firms, who have faced scrutiny over their high AI investments.

After the initial shock, US stock markets stabilized on Tuesday. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained nearly 1%, and the Nasdaq saw a 2% increase. In the UK, the FTSE 100 closed 0.35% higher. Meanwhile, AI-related stocks in Japan, including Advantest, SoftBank, and Tokyo Electron, saw sharp declines, contributing to a 1.4% drop in the Nikkei 225. Several Asian markets remained closed for the Lunar New Year holiday, with mainland China's markets set to reopen on February 5.

DeepSeek's Founder: Liang Wenfeng

DeepSeek was founded in 2023 by Liang Wenfeng in Hangzhou, China. The 40-year-old, an engineering graduate, also established the hedge fund that financed the development of the AI app. Liang recently attended a meeting with industry leaders and Chinese Premier Li Qiang. In a July 2024 interview, he expressed surprise at the sensitivity surrounding the pricing of his AI models, stating that the company had simply focused on cost-efficient development and pricing without anticipating such a reaction from the market.

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Trump Respon Peluncuran AI Canggih China: DeepSeek R1

Presiden Amerika Serikat Donald Trump memberikan tanggapan terhadap kemunculan AI canggih dan gratis dari China, yaitu DeepSeek R1, yang telah menghebohkan dunia teknologi.

Menurut Trump, peluncuran chatbot DeepSeek merupakan peringatan bagi perusahaan teknologi AS dalam perlombaan global untuk mendominasi kecerdasan buatan (AI).

DeepSeek R1: Chatbot Canggih dari China

DeepSeek, chatbot model R1 yang diluncurkan oleh perusahaan dengan nama yang sama, hadir dengan biaya yang jauh lebih murah dibandingkan pesaing-pesaing besar seperti ChatGPT milik OpenAI dan Gemini dari Google. Kehadirannya langsung memberikan dampak besar terhadap pasar.

Dampak terhadap Pasar Teknologi AS

Peluncuran DeepSeek mengakibatkan penurunan nilai saham beberapa perusahaan teknologi AS sebesar USD 1 triliun. Nvidia, pembuat chip yang mengalami pertumbuhan pesat di tengah booming AI, mengalami penurunan nilai pasar hingga USD 600 miliar hanya dalam sehari.

Trump menanggapi hal ini dengan mengatakan, "Peluncuran DeepSeek, AI dari perusahaan China, seharusnya menjadi peringatan bagi industri kita bahwa kita perlu fokus pada persaingan untuk menang."

Keunggulan DeepSeek: Hemat Biaya dan Kinerja Tinggi

DeepSeek R1 ternyata mampu memiliki kinerja yang setara dengan model AI lainnya meskipun menggunakan sumber daya yang lebih sedikit. Hal ini tentunya mengancam dominasi AI yang selama ini dipimpin oleh perusahaan-perusahaan AS.

Trump: "DeepSeek adalah Aset Positif"

Trump menyebutkan bahwa meskipun DeepSeek mungkin mengganggu dominasi AS dalam hal AI, ia melihatnya sebagai hal yang positif, terutama karena pengguna tidak perlu menghabiskan banyak uang untuk mendapatkan kinerja yang baik.

"Ini bagus karena Anda tidak perlu menghabiskan banyak uang. Saya melihatnya sebagai hal yang positif, sebagai aset," tambah Trump.

Pesaing Baru OpenAI dan Reaksi CEO Sam Altman

DeepSeek R1 berhasil mengungguli ChatGPT dalam unduhan dari toko aplikasi Apple di AS. Sam Altman, CEO OpenAI, menyatakan bahwa ia terkesan dengan DeepSeek, meskipun ia yakin industri AS akan mempercepat pengembangan untuk tetap unggul.

"DeepSeek R1 adalah model yang mengesankan, terutama dalam hal apa yang dapat mereka berikan untuk harganya. Kami jelas akan memberikan model yang jauh lebih baik dan juga sangat menggembirakan untuk memiliki pesaing baru," ujar Sam Altman.

Momen Sputnik AI: Peluncuran DeepSeek Dinilai Sejarah

Marc Andreessen, kapitalis ventura terkemuka AS, membandingkan peluncuran model R1 DeepSeek dengan momen penting dalam perlombaan antariksa AS-Uni Soviet. Ia menyebutnya sebagai "momen Sputnik AI," merujuk pada kejutan yang diberikan Uni Soviet dengan peluncuran satelit pertama ke orbit.

Kualitas DeepSeek R1 Dibandingkan dengan Pesaing

DeepSeek mengklaim bahwa model R1-nya telah mengungguli model o1-mini OpenAI dalam berbagai tolok ukur pengujian. Penelitian oleh Artificial Analysis juga menunjukkan bahwa DeepSeek mengungguli model-model yang dikembangkan oleh Google, Meta, dan Anthropic dalam kualitas keseluruhan.

Sejarah dan Visi DeepSeek

Perusahaan DeepSeek didirikan oleh pengusaha Liang Wenfeng, yang memulai hobinya dalam mengembangkan model AI dengan membeli chip Nvidia pada tahun 2021. Pada tahun 2023, ia mendirikan DeepSeek yang berkantor pusat di Hangzhou, China.

Fokus Penelitian dan Akses Gratis

DeepSeek berfokus pada penelitian ketimbang produk komersial, sehingga asisten DeepSeek dan kode dasarnya dapat diunduh secara gratis. Selain itu, biaya operasional model DeepSeek juga lebih murah dibandingkan dengan model o1 milik OpenAI.