The United States and China have been in a tech war because the U.S., which had AI powerhouses like Open AI, ChatGPT, and Google Gemini, banned the sales of semiconductor chips to China for years to limit China’s AI capacity. However, China made a deep seek into the unknown only made known recently.
Last week, China released an AI model, which, according to users, is more powerful and up-to-date than anything the Americans have, that is, the DeepSeek-R1. The DeepSeek API uses an API format compatible with OpenAI. By modifying the configuration, you can use the OpenAI SDK or software compatible with the OpenAI API to access the DeepSeek API.
The Chinese have also made the AI model open source, making it available for download, fine-tuning, and altering to suit the user’s demands. The move by the Chinese over the week had made tech billionaires lose a combined amount of over $100 billion in the value of AI companies on the American stock exchange market.
“DeepSeek’s announcement illustrates the dangers of high valuations. Stocks priced for perfection are vulnerable to significant sell-offs, even with limited information,” said Kristina Hooper, the Chief Global Market Strategist at Invesco. “However, this could also make AI more accessible at a far lower cost.”
“Nvidia’s stock dip is a ‘golden’ buying opportunity. No major U.S. company will rely on a Chinese firm like DeepSeek for AI infrastructure,” said Wedbush securities analyst Dan Ives. Gene Mun, a partner at Atwater Asset Management, noted that the “anxiety surrounding DeepSeek may be exaggerated” and “its emergence could accelerate AI adoption while reducing costs, benefiting the broader tech sector.”
Bradley Smith, an International ETF specialist, explained that the DeepSeek “disruption underscores the need for diversification in portfolios, as tech-heavy indices suffered disproportionately from the sell-off”. Chris Versace, a portfolio manager, stated that DeepSeek’s cost-efficient model might “reduce demand for high-end chips but opens opportunities for software companies to thrive on cheaper AI infrastructure.”
Garth Friesen, a Forbes contributor, also mentioned that by “defying conventional wisdom, DeepSeek has triggered a sharp sell-off in AI stocks. Yet, disruption often breeds opportunity for innovation and growth.”
Dr Rachel Kim, an AI researcher, explained that DeepSeek “has the potential to revolutionize the field of natural language processing. Its ability to understand and generate human-like language is unparalleled.”
John Lee, a computer science professor, believes that DeepSeek’s architecture is impressive, but its “true strength lies in its ability to learn and adapt to new tasks. This is a game-changer for AI research.” At the same time, Dr Maria Rodriguez, a linguist, noted DeepSeek’s language generation capabilities as “stunning.” Rodriguez added, “It’s able to capture the nuances of human language in a way that’s both impressive and unsettling.”
However, Dr David Patel, an AI ethics specialist, pointed out that as impressive as DeepSeek is, “we need to be cautious about its potential applications. We must ensure that it’s used responsibly and with consideration for its potential impact on society.”
For Prof Emily Chen, a data scientist, DeepSeek’s ability to process and analyse vast amounts of data is “unparalleled”, noting that this has “significant implications for fields such as healthcare, finance, and education.” Similarly, cognitive scientist Dr Ryan Thompson noted that DeepSeek’s cognitive architecture is “fascinating”, stating that it is “able to mimic human thought processes in a way that’s both fascinating and a little unnerving.”
Dr Sophia Jensen, an AI engineer, said it is a “valuable tool for industries such as healthcare and finance.”
According to a professor of philosophy, Michael Kim, DeepSeek “raises important questions about the nature of intelligence and consciousness”. Kim reasoned that to continue to develop AI systems like DeepSeek, “we must consider the implications for our understanding of human existence.”
AI researcher Dr Lisa Nguyen hailed DeepSeek’s ability to learn from feedback, stating that this “allows it to adapt to new tasks and environments with ease, making it a valuable tool for industries such as robotics and autonomous systems.”
Yet, cybersecurity specialist Dr Brian Hall warned that DeepSeek’s security implications are “significant”.
Hall said, “As we continue to develop AI systems like DeepSeek, we must ensure that they are secure and resilient to potential threats.”
