China's DeepSeek suggests AI can be done cheap. The fallout could be costly
2 months ago

China's DeepSeek suggests AI can be done cheap. The fallout could be costly

ABC  

From market darling to the biggest value destructor in history Investors in computer chip company Nvidia have seen nearly a trillion US dollars of value wiped out in a day — the worst-ever result for a single company in absolute terms. And yet, here is a Chinese company, founded in 2023, seemingly without access to America's best chips, creating a new product that rivals the best artificial intelligence technology in America. That's why we saw such widespread falls in US technology stocks on Monday, local time, as well as those companies whose future profits were tied to AI in different ways, like building or powering those large data centres thought necessary. America is betting big on AI One of the first major announcements of a freshly reinaugurated Donald Trump was a massive private investment in artificial intelligence in the US. There are also still big questions about how advanced DeepSeek's technology truly is and whether people outside China will want to use an AI tool that must still adhere to Chinese state censorship.

History of this topic

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