Chinese start-up that wiped $1Trillion off the USA Stock Market overnight
 

https://liveblog.digitalimages.sky/l...cf360e422.jpeg


Dumb Biden, months back
shouted USA Electronic Chips
would be made in America


[The race for domination in
artificial intelligence was blown wide open
on Monday after the launch of a
Chinese chatbot wiped $1tn from the
leading US tech index, with one
investor calling it a “Sputnik moment”
for the world’s AI superpowers.

Investors punished global tech stocks
on Monday after the emergence of DeepSeek,
a competitor to OpenAI and its
ChatGPT tool, shook faith in the
US artificial intelligence boom by
appearing to deliver the same
performance with fewer resources.

The tech-heavy Nasdaq composite index fell
just over 3% in afternoon trading
in New York, representing a loss of
approximately $1tn from its closing
value of $32.5tn last week,
as investors digested the implications
of the latest AI model developed
by DeepSeek.]

https://www.theguardian.com/business...na-ai-deepseek





DeepSeek uses fewer chips
that's why they are doing so well.

A shock for USA GPT Chat

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[Chipmaker Nvidia, which benefitted
from the AI frenzy in 2024,
fell around 11 percent as markets opened,
wiping out $465 billion in market value.

Another US chipmaker, Broadcom,
also lost around 12 percent,
while software giant Oracle lost 8 percent
in early trading.

Microsoft slid 3.5 percent and Amazon
was down 0.24 percent in
the first hour of trading.
Google parent company Alphabet lost
about 3.5 percent and Facebook parent
Meta shed 2.5 percent.]

https://www.dailymail.co.uk/news/art...a-startup.html

It'll rebound. But yeah, Western Tech is spooked. Let's hope it hits Elon :fc:

AI has been heading toward the next "bubble" for at least a couple of years. In those circumstances, it was always going to be likely that the likes of Nvidia's stock value would drop. There has been huge investment by american tech firms with little in the way of business model to back it up. There was always going to be a consolidation phase and that's where we are heading now

The thing to consider really isn't "can they do the same thing on cheaper components,and does that make the expensive ones unnecessary"... It's if they can do the same as what those high end components are doing now with basic components - what can AI operating with the same methods do IF it's using those high-end components.

Possible big leap in AI capabilities is incoming...

... The main thing the markets don't like about it, is that it's #1 Chinese, and #2 open source.

Sky News Text:
[The Daily Star leads on AI chatbots, which, it says,
have learned to replicate themselves.]


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