Poonam Nath

Is Chinese AI DeepSeek, threat to investors! US tech giant Nvidia's share value tumbles down  

Digital Desk: US tech giant Nvidia lost over a sixth of its value following the surge in popularity of a Chinese AI chatbot, DeepSeek.

Launched last week, DeepSeek has become the most downloaded free app in the US. The company was founded by Liang Wenfeng in 2023. He reportedly built up a store of Nvidia A100 chips, which are now banned from export to China.

This has led to a tumble in the values of other AI-related tech firms like Microsoft and Google.

DeepSeek is temporarily limiting registrations due to "large-scale malicious attacks" on its software, raising concerns about the future of America's AI dominance and the scale of US firms' planned investments.

President Donald Trump has announced DeepSeek, the largest AI infrastructure project in history, as a means to maintain the future of technology in the US.

The project, powered by the open-source DeepSeek-V3 model, was trained for around $6m, significantly less than rivals' billions spent. The US is restricting the sale of advanced chip technology that powers AI to China.

DeepSeek-R1, launched earlier this month, boasted "performance on par with" one of OpenAI's latest models for tasks like math, coding, and natural language reasoning. DeepSeek-R1 has been termed "AI's Sputnik moment" by venture capitalist Marc Andreessen from Silicon Valley.