Chinese DeepSeek Rattles US AI Market

broknsymetry

U.S. technology firms plunged in Monday premarket trading, part of a global sell-off as Chinese startup DeepSeek sparked concerns over competitiveness in artificial intelligence and America’s leadership in the sector.

Shares of chip designer Nvidia, a major beneficiary of the AI hype, slid more than 12% ahead of the market open. This rout extended to other AI trades like Micron and Arm Holdings, which both dropped more than 7%. Broadcom and Advanced Micro Devices lost around 11% and 4%, respectively.

Constellation Energy and Vistra, two of the best-known derivative plays tied to the power buildout, each plummeted about 16%.

International markets also felt the impacts. Netherlands-based chip companies ASML
and ASM International tumbled more than 8% and 12%, respectively, in European trading. In Asia, Japanese chip-related stocks including Advantest and Tokyo Electron were broadly lower.

DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million — a much smaller expense than the one called for by Western counterparts. Last week, the company released a reasoning model that also reportedly outperformed OpenAI’s latest in many third-party tests.

https://www.cnbc.com/2025/01/27/nvidia-falls-10percent-in-premarket-trading-as-chinas-deepseek-triggers-global-tech-sell-off.html

I guess it is less expensive if you spy on your citizens to train your AI.

lesmikesell

broknsymetry

broknsymetry I guess it is less expensive if you spy on your citizens to train your AI.

Would you want an AI as dumb as the average citizen?

broknsymetry

Key Points

DeepSeek on Monday said it would temporarily limit user registrations “due to large-scale malicious attacks” on its services.

The Chinese AI startup recently toppled OpenAI’s ChatGPT from its title of most-downloaded free app in Apple’s App Store.

https://www.cnbc.com/2025/01/27/deepseek-hit-with-large-scale-cyberattack-says-its-limiting-registrations.html

Hmm, Nvidia shareholders?

Astyanax

Are we really expected to believe the CCP couldn't figure out how to smuggle a truckload or two of NVIDIAs best export-restricted chips out the back loading dock of one of TSMC's factories one Friday night and into the hold of a few fishing boats to make the 100-mile crossing of the Taiwan Strait?

To say they did all this for only "$6 million" is absurd. Their payroll had to be more than that even for China if it's to be at all legit.

NVIDIA's stock is already back up over 3% in pre-market trading. If this is all true it should be plummeting another 10+%.

HooRU

So much bragging from the CCP, but the country is almost in shambles. I read they broke some record in fusion too. If it's true, good for them, but they are using slave labor and oppression to achieve this stuff.

Astyanax

Back up almost 9% today. I should've bought some more. Damn!