"Over the last week, pretty much everyone in the AI space has been losing their minds over DeepSeek R1," The Neuron, a daily AI newsletter, says. Today the U.S. stock markets are sharing in the freakout.
High-flying stocks like Nvidia are "set for a steep selloff" this morning as the Chinese company DeepSeek's "surprise advancement" spooks American investors, CNN Business executive editor David Goldman and reporter Matt Egan write.
This is the surprise: DeepSeek – which soared to #1 on Apple's app store chart over the weekend – "presented a ChatGPT-like AI model called R1, which has all the familiar abilities, operating at a fraction of the cost of OpenAI's, Google's or Meta's popular AI models."
For background, check out Cade Metz and Meaghan Tobin's NYT story from last week. They said DeepSeek "built a cheaper, competitive chatbot with fewer high-end computer chips than U.S. behemoths like Google and OpenAI, showing the limits of chip export control."
That's one of Goldman's takeaways, too. "America thought it could sanction its way to dominance in a key technology it believes will help bolster its national security. But that has been proven false," he told me this morning. "It bought itself time, but you can't assume that turning off access will necessarily mean America wins. That's an important message to Trump as he pursues an isolationist and America first policy."
From:
reliablesources@newsletters.cnn.com
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