Chinese AI Deepseek Deep Sixes Openai in App Store, Stocks Tank

The Chinese AI Chatbot Deepseek has displaced Openai’s Chatgpt as the most wide app on the Apple App Store and the market is in panic. The shares of large artificial intelligence companies such as NVIDIA fell on Monday morning after the news.

Deepseek released his chatbot R1 at the end of December and it only took about a month to take its place at the top of the App Store. Following the news that it reached the top, the stock prices of the NVIDIA graphic processor manufacturer fell by 11%, Oracle fell by 8%, and Palantir fell by 5%(Kramer’s effect). The shares adapt to the revelation that China can create AI faster, cheaper and as good as America.

The reason why the market deviates is because Deepseek-R1 It took two months For construction, it cost $ 6 million and was trained with the help of cheaper and inferior NVIDIA H800 graphic processors. Moreover is open source so anyone can go to GitHub right now, disassemble it and scatterS

When it comes to training AI models, Silicon Valley has always said that bigger and more expensive is better. Openai’s CEO Sam Altman seems to believe that he is building some kind of literally God on earth Called Agi and that the construction of this beast will require huge resources. Openai’s business models require a sacrifice of the present to build a terrifying future in its own image.

Openai said he must steal the creative production of everyone on the planet in order to refine his models and that he cannot pay them for it. You will need to build huge data centers to process information powered by new nuclear power plants. Meta, Anthropic and other companies are investing billions to build AI power infrastructure in the hope of a huge return and future, which is easier and simpler for technological billionaires.

Softbank and Openai have united with President Trump to announce StargateAI initiative worth $ 500 billion. The United States has adopted the CHIPS law to ensure that China will not receive the most modern graphic processors and is unable to build AI as fast as America. The Silicon Valley Masters were ready to spend billions to restore parts of the country and, hoped, to change the way America works.

Six million dollars. Two months. NVIDIA H800 SXM5SS This is all that was necessary to question this dream of the future.

“To see the new Deepseek model, it’s super impressive in terms of how they really made an open source model that makes this time -consuming conclusion time, so is a super -calculated effective,” Satya Nadella, Chief Executive Director of Microsoft and Openai Business said a partner in Davos last week. “We have to accept China’s development very, very seriously.”