China hits US hard, launches a new technology which may affect the business of….

China DeepSeek AI: In a major move that has shaken the entire world, China’s announced to the world its achievement in AI technology through the launch of of artificial intelligence startup DeepSeek. We must have heard many stories of Ai chatbots including Miscrosoft Bing, Open AI’s ChatGPT and Google’s Gemini and a common thing that connected them all was their American connection. However, going against the storm, China has developed an AI bot which is challenging the likes of ChatGPT.

As a result of the Chinese achievement, US stock futures declined as the Nasdaq contract experienced significant losses, while shares of Japanese chip manufacturers faced substantial selling pressure. Conversely, technology stocks in China and Hong Kong are witnessing increases, driven by the swift ascent of DeepSeek, which raises concerns regarding the technology and future prospects of American tech giants such as Nvidia and Google.

China‘s DeepSeek sparks AI market rout

Technology shares around the world slid on Monday (January 27) as a surge in popularity of a Chinese discount artificial intelligence model shook investors’ faith in the AI sector’s voracious demand for high-tech chips.

Startup DeepSeek has rolled out a free assistant it says uses lower-cost chips and less data, seemingly challenging a widespread bet in financial markets that AI will drive demand along a supply chain from chipmakers to data centres.

A report from Forbes indicates that China has astonished the United States by creating its AI model, ‘DeepSeek,’ for only $5.6 million. In contrast to the American AI model, DeepSeek utilizes open-source technology and does not require advanced hardware.

Little is known about the small Hangzhou startup behind DeepSeek, but its assistant leapfrogged rival ChatGPT to become the top-rated free application on Apple’s App Store in the United States on Monday.

(With inputs from agencies)