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US technology stocks fell on Monday after the popularity of Chinese artificial intelligence company Deepseek raised concerns among investors about US dominance in the sector.
The tech-heavy NASDAQ Composite fell more than 2.6% in early trading. The Dow Jones Industrial Average fell more than 100 points and the S&P 500 was down more than 1.5%.
Deepseek is gaining attention in Silicon Valley as the company appears to nearly match the capability of chatbots like Openai’s chatgpt, but at the cost of development.
| index | protection | last | It changes | % changes |
|---|---|---|---|---|
| Me: comp | Nasdaq Composite Index | 19415.496969 | -538.80 |
-2.70% |
| Me: DJ | Dow Jones Averages | 44351.18 | -73.07 |
-0.16% |
| SP500 | S&P 500 | 6002.28 | -98.96 |
-1.62% |
Nvidia shares had the most difficulty, falling more than 11%, and other technology companies led lower. ARM and Advanced Micro Devices holdings were 8% and 5.5% lower, respectively. Microsoft fell 3.5%.
| index | protection | last | It changes | % changes |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 123.20 | -19.42 |
-13.62% |
| arm | ARM Holdings PLC | 149.63 | -12.89 |
-7.93% |
| AMD | Advanced Micro Devices Inc. | 122.84 | -0.20 |
-0.16% |
| MSFT | Microsoft Corp. | 430.64 | -13.42 |
-3.02% |
Deepseek has soared in popularity in global app stores since the app was released earlier this month, having been downloaded 1.6 million times by January 25 in the US and ranking number one in iPhone app stores in Australia, Canada, China, Singapore, US and UK. United Unlike ChatGPT and other major AI competitors, DeepSec is open source, allowing developers to bring their own improvements to the software.
The company unveiled the R1, a specialized model designed to solve complex problems, on January 20, which has been “enlarged to the top 10 in global performance,” and is built much faster, with fewer AI chips and lower cost than models. other american, According to the Wall Street Journal.
Yann LeCun, chief AI scientist, took to social media to talk about the app and its rapid success.
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The chatbot app is developed by Chinese AI company Deepseek (Getty Images / Getty Images)
He pointed out In a post on topics, What stuck out most about Deepseek’s success wasn’t the growing threat created by Chinese competition, but the value of keeping AI models open source, so anyone can benefit.
“It’s not that China’s AI is ‘outpacing the US’, but rather that ‘open source models are overtaking proprietary models,'” Licon explained.
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In this photo illustration, the Openai logo is displayed on a mobile phone screen with the ChatGPT logo in the background. (Photo illustration by Idrees ABBAS/SOPA Images/lightrocket via Getty Images/Getty Images)
Experts told the magazine that Deepseek technology is still behind Openai And Google. However, it is a close competitor despite using fewer and less advanced chipsets, and in some cases skipping steps deemed necessary by the American developers.
As of Saturday, The Journal reported that two Deepseek models had ranked in the top 10 on Chatbot Arena, a platform hosted by University of California, Berkeley researchers that evaluates chatbot performance.
Signs outside Meta headquarters in Menlo Park, California, on Thursday, February 1, 2024. (Photographer: David Paul Morris/Bloomberg via Getty Emojis/Getty Irish)
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Although Deepseek’s flagship model is free, The Journal reported that the company charges users who connect their own applications to Deepseek’s model and computing infrastructure.
Bryce Stephenie Business contributed to this report