Stocks and Investing Stocks and Investing
Mon, January 27, 2025

DeepSeek's 'Sputnik moment' sparks rout in AI-linked stocks


Published on 2025-01-27 11:21:02 - Investing
  Print publication without navigation

  • Marc Andreessen, the Silicon Valley venture capitalist, said in a post on X on Sunday that DeepSeek's R1 model was AI's "Sputnik moment", referencing the former Soviet Union's launch of a satellite that marked the start of the space race in the late 1950s.

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 ]
Contributing Sources