China's DeepSeek that launched an app on inauguration day rattles the President; Donald Trump says it's a wake up call
DeepSeek has eventually emerged as a significant competitor in the tech industry while specifically following the launch of its R1 model which has been extremely touted for its cost effectiveness and performance, reported BBC.
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According to BBC, the R1 of DeepSeek was eventually developed for approximately $6 million which is just a fraction of the billions spent by renowned US rivals like OpenAI and Nvidia while raising alarms about the future of American AI dominance. DeepSeek pretty quickly became the most downloaded free application in the US while causing the market value of Nvidia to surprisingly plummet by nearly $600 billion.
During such times, US President Donald Trump described the rise of DeepSeek as a major ‘wake-up call’ for the American tech firms while also suggesting that cheaper alternatives could benefit the US economy far more, asserted BBC. However, at the same time, significant concerns regarding cybersecurity have been raised with eminent experts urging extreme caution regarding data privacy and quality.
In spite of the skepticism about the claims of DeepSeek, some industry leaders are acknowledging its true potential to actually disrupt the market and accelerate AI adoption due to lower costs.
The situation has led to a severe mixed reaction in global markets with US tech
