DeepSeek: The Chinese AI Startup Disrupting Billion-Dollar Giants

What is DeepSeek? 

DeepSeek is an AI-based company, similar to American AI companies like ChatGPT, Meta, and other US billion-dollar-equipped companies that are investing in this category. This company was founded in 2023, and there were no ground operations, etc., and it was just a paper launch in Hangzhou, China at that time. 

Liang Wenfeng is the founder of DeepSeek, and he funded this via hedge funds, and he is now 40 years old, and according to reports, his AI business is powered by Nvidia A100 chips, and it is also reported that it has 50,000 A100 chips that are powering DeepSeek. 

Yesterday, DeepSeek was the most downloaded app on mobile phones, and the biggest part of it is that it is free to use, unlike other AI applications, which you are required to pay for on Android and iPhone for enhanced features, and free service is very limited.

What does it do?

Basically, it is the same as ChatGPT, Meta, and many other AI applications or websites that require you to pay for a subscription or to avail better features; however, DeepSeek currently does not require you to pay at all, and it is very for all, and it has the same features as ChatGPT or other AI applications, but you have to pay for those features; however, not for DeepSeek. 

It is designed in such a way that it will answer all your questions, and it is even reported that it can answer better than ChatGPT or other American AI companies' applications. 

Why US stock exchange was down, especially Nvidia?

It is hitting USA-based companies because of the price that the USA-based companies have told stakeholders and investors all around the world that it requires for building an AI platform. These companies claimed that their AI features are life-changing, and no other country could build them even if they had the funds. However, since yesterday, DeepSeek changed the entire motive and statement of the US that without investing billions of dollars, DeepSeek is able to compete with billions of dollars funded by AI giants.

It caused massive panic on the NY stock exchange, and reportedly Nvidia was hit the most and lost nearly US $600 billion in a single day, and the total combined with other companies was $1 trillion in value lost due to DeepSeek, which proved that it is that small fraction of US a million dollars that can compete with companies that invested billions or trillions of dollars in AI.