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Mon, January 27, 2025

DeepSeek's 'Sputnik moment' prompts investors to sell big AI players


Published on 2025-01-27 08:01:07 - Investing
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  • SINGAPORE (Reuters) - Nasdaq futures slumped and technology shares slid in Japan on Monday as surging popularity of a Chinese discount artificial intelligence model wobbled investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.

The article from Investing.com discusses the impact of China's DeepSeek AI on the global AI market. DeepSeek AI, backed by a $140 million investment from Alibaba, has introduced a new open-source AI model that rivals the capabilities of leading Western AI technologies like those from Meta and Mistral. This development has caused a stir in the AI industry, leading to a market rout as investors reassess the competitive landscape. The model, which focuses on understanding and processing Chinese language and culture, has not only challenged the dominance of Western AI firms but also sparked concerns about data privacy and national security. The article highlights how DeepSeek's entry might accelerate the AI arms race, prompting other companies to expedite their AI development efforts, while also raising questions about the future of AI regulation and international tech competition.

Read the Full Investing Article at:
[ https://www.investing.com/news/stock-market-news/chinas-deepseek-sets-off-ai-market-rout-3831131 ]
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