China's one move and America was defeated!
Nvidia Corporation's shares fell sharply during US pre-market trading. This decline came after China's Artificial Intelligence (AI) startup DeepSeek introduced its new AI technology. DeepSeek performed better than Western chatbots through this technology and most importantly, its price is also very low.
Nvidia's shares fell by 11 percent
As per indian time, at 5:29 am, the price of Nvidia's shares was $126.75 on Nasdaq. This shows a decline of $15.87 or 11.13 percent from the previous level. The impact of this decline was not limited to Nvidia only, but the tech-heavy Nasdaq Composite Index also fell by 0.50 percent i.e. 99.38 points to 19,954.30.
DeepSeek's AI model and its success
DeepSeek, founded by Quant Fund chief Liang Wenfeng, launched its new AI model last week. The model immediately reached the top of Apple's App Store rankings. DeepSeek is now considered a potential competitor for companies like OpenAI and Meta Platforms Inc. DeepSeek has kept its AI model open-sourced, making it much more affordable than other products. Experts believe that it can pose a big challenge to the existing AI business model. This model is based on expensive chips, more computing power and energy.
Success despite US sanctions
The biggest thing is that the US has banned the export of China's high-tech semiconductor technologies. The sale of Nvidia's cutting-edge AI chips has also been restricted to china and its allies. Apart from this, the Dutch government has also banned the supply of deep ultraviolet lithography system to china under US pressure. But despite this, DeepSeek has overcome this obstacle by focusing on greater efficiency with limited resources. The company is strengthening its hold in the market through its effective technologies.
What is DeepSeek AI?
DeepSeek AI is an emerging AI platform developed in China. It has the potential to compete with leading AI models like OpenAI and recently a new version called DeepSeek-V3 has been launched, which has created a stir around the world. To put it simply, DeepSeek AI, especially DeepSeek-V3, is an open-source AI model, which means it can be used and customized by developers around the world.
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