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DeepSeek: Myths, Realities & Controversies
DeepSeek, a Chinese AI startup, dominated global news this week with its AI models, reportedly developed using Nvidia H800 chips, which comply with U.S. export controls. These models claim to challenge U.S. rivals in performance and cost-effectiveness. The release contributed to a 17% drop in NVIDIA’s stock price on January 27 — the largest single-day market cap loss in history, erasing nearly $600 billion — reflecting investor concerns over future AI chip demand. However, some analysts argue that the sell-off was driven not just by DeepSeek but also by broader concerns about AI stock overvaluation and market sentiment.
DeepSeek’s release was also met with widespread enthusiasm in some circles, particularly in the open-source AI community and across Asia, where developers and users welcomed the models for their accessibility and strong performance. The open-source nature of DeepSeek’s releases has encouraged rapid adoption and experimentation, further accelerating its influence in the AI landscape.
