As China's DeepSeek rattles America, is India a big winner from the AI battle?
DeepSeek. As DeepSeek’s innovative approach disrupts the AI market and garners praise from even OpenAI’s CEO, Sam Altman, netizens debate about India’s readiness to claim a significant position in this rapidly evolving sector. While India has made strides in technology, many believe structural issues in education, funding, and risk-taking hold the country back from developing groundbreaking AI systems.
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DeepSeek’s Disruption
DeepSeek’s R1 model has been lauded for its ability to deliver AI-powered solutions at a fraction of the cost of its Western counterparts. Using Nvidia’s lower-capability H800 chips, the model was developed for under $6 million, a stark contrast to the massive investments required by other major players in the AI industry. This disruptive approach not only threatens the dominance of established AI companies but also highlights the possibility of innovation without reliance on cutting-edge hardware.
The announcement of DeepSeek’s model triggered a selloff in global tech stocks, wiping billions off market valuations. Nvidia, the AI boom’s poster child, saw its stock plunge by 17%, erasing $593 billion in market value—a record one-day loss for any company. This underscores the volatile nature of the AI industry and the sensitivity of markets to emerging competition.
Can India Build
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