US tech giants are bracing themselves for a potential AI-powered storm, with DeepSeek's latest breakthrough sending shockwaves through the market. The Chinese startup claims to have trained an AI model that rivals top US-born technology at a fraction of the cost, sparking fears of competition and disruption.
The latest casualty is Nvidia, whose stock price plummeted as investors feared the worst in the wake of DeepSeek's announcement. Broadcom is also feeling the pinch, with its shares taking a hit amidst speculation about the impact of this new player on the market.
But while some are panicking, others see DeepSeek's breakthrough as a welcome development. With AI costs set to balloon exponentially in the coming years, companies like Nvidia and OpenAI are being forced to break the bank just to keep up with the latest models. Meanwhile, DeepSeek is shaking its head at the expense of these giant tech firms.
Sam Altman, CEO of OpenAI, admitted that his company spent over $100 million on GPT-4 training costs last year - a figure that DeepSeek seems to be mocking with its own $5.6 million expenditure. For Antropic CEO Dario Amodei, the cost of training models is approaching $1 billion.
Whether this marks the beginning of an AI revolution or just another bubble waiting to burst remains to be seen.
The latest casualty is Nvidia, whose stock price plummeted as investors feared the worst in the wake of DeepSeek's announcement. Broadcom is also feeling the pinch, with its shares taking a hit amidst speculation about the impact of this new player on the market.
But while some are panicking, others see DeepSeek's breakthrough as a welcome development. With AI costs set to balloon exponentially in the coming years, companies like Nvidia and OpenAI are being forced to break the bank just to keep up with the latest models. Meanwhile, DeepSeek is shaking its head at the expense of these giant tech firms.
Sam Altman, CEO of OpenAI, admitted that his company spent over $100 million on GPT-4 training costs last year - a figure that DeepSeek seems to be mocking with its own $5.6 million expenditure. For Antropic CEO Dario Amodei, the cost of training models is approaching $1 billion.
Whether this marks the beginning of an AI revolution or just another bubble waiting to burst remains to be seen.