On January 10, Chinese tech startup DeepSeek released its first publicly available open source Language Learning Model (LLM) in the form of the DeepSeek chatbot app. The LLM innovative design reduces the strain on a computer’s graphics processing unit (GPU), making DeepSeek more accessible and reducing the investment required to use and maintain the LLM.
DeepSeek has been hailed as a major step forward in the development of AI as well as the Chinese tech industry, and has prompted major reactions from Western media and companies. As a result of its lowered GPU requirements, DeepSeek’s release immediately tanked the stock price of Nvidia, the largest GPU producer in the world. This prompted an overall drop in the stock market, especially among tech companies, as investor confidence in western LLMs suffered.
In the past, the Chinese tech industry was able to effectively recreate American software but often found itself following trends rather than leading them. The release of DeepSeek has prompted many observers to reassess the competence of the Chinese tech industry, particularly in light of the fact that Western firms appear to have been caught completely unprepared for this announcement.
American AI company OpenAI, DeepSeek’s biggest competitor, has accused DeepSeek of copying elements of its LLM. However, many observers have ridiculed these accusations, as OpenAI trained its models on publicly available data instead of only in-house material. In fact, many artists and writers have accused OpenAI of committing plagiarism or stealing from internet content creators.
The release of DeepSeek approaches on the heels of the recent Trump administration “Operation Stargate” announcement. Operation Stargate is a $500 billion investment in the US tech industry, with particular emphasis placed on data centers and AI development. At the time of this article’s publication, the DeepSeek announcement has wiped over $500 billion off Nvidia’s stock alone, potentially placing the future of the entire Operation Stargate scheme in jeopardy.
