China shakes up the artificial intelligence sector with DeepSeek

Technology companies have discovered the perfect tool to showcase their power—a resource that allows them to prove they are superior to their direct competition. For several years now, artificial intelligence (AI) has epitomized progress in an industry advancing at an extraordinary pace.

A major breakthrough in the sector has emerged from China. Liang Wenfeng, a tech tycoon from Hangzhou – a city renowned for being home to numerous tech company headquarters – has successfully introduced DeepSeek, an AI model he developed. The app has made such an impact on the U.S. market that it has become the most downloaded application on devices across the country.

Its sudden rise led to a dramatic drop in the market capitalization of Nvidia, the leading company in the AI field, which plummeted over $400 billion, or 13%, this Monday.

Only $5.6 million was allocated for the launch of DeepSeek, a modest sum in comparison to the investments made by industry giants like Nvidia, OpenAI, and Meta Platforms.

Currently, DeepSeek offers basic functionality, with its language capabilities limited to English and Chinese. However, those who have tested the chatbot report that it solves math problems "better" than its competitors, according to AFP.

Is Xi Jinping behind DeepSeek?

It has also been observed that DeepSeek demonstrates the ability to sidestep sensitive topics by steering the conversation in a different direction. This was evident when it was asked about Xi Jinping, the president of the communist regime, and the chatbot avoided addressing the topic.

This strategic avoidance by DeepSeek has sparked suspicions that the Chinese government may be behind the AI model. While there is no clear answer, one thing is certain: China aims to dominate the AI sector by 2030, with multibillion-dollar investments planned to achieve this goal.