Chinese AI chatbot DeepSeek replaces OpenAI's ChatGPT as the most downloaded app in the Apple App Store, and the market is in a panic. Shares of major AI-related companies such as NVIDIA fell Monday morning after the news.
DeepSeek launched its R1 chatbot at the end of December. And it only took the app about a month to earn a spot at the top of the App Store, from what it's been rumored to have reached the top. Share prices of GPU maker NVIDIA fell 11%, Oracle fell 8% and Palantir fell 5% (Cramer Effect– Stocks are rallying following revelations that China can build AI faster, cheaper and as good as America.
The reason the market turned around was because of DeepSeek-R1. It took two months. Built with a cost of 6 million US dollars. and was trained using the cheaper, lower power NVIDIA H800 GPU. It's also open source, so anyone can go to GitHub right now, fork it, and tinker with it–
When it comes to training AI models, Silicon Valley always says bigger and more expensive is better. Sam Altman, CEO of OpenAI, seems to believe he's creating some kind of alphabet. god on earth It's called AGI, and creating this beast required enormous amounts of resources. OpenAI's business model requires sacrificing the present to create a terrifying future in its own image.
OpenAI says it needs to steal everyone's creations on the planet to customize its models and can't afford to pay them. Fast data centers will need to be built to process the data powered by the new nuclear power plants Meta, Anthropic and others will need. Billions are being invested to build the infrastructure to power AI, hoping for huge returns. And an easier future for tech billionaires
Softbank and OpenAI join forces with President Trump to announce StargateIt is a $500 billion AI initiative. US passes CHIPs law to ensure China doesn't get the most advanced GPUs And unable to create AI as quickly as America, Silicon Valley's AI lords are set to spend billions to rebuild the country. And they hope to change the way America works.
Six million dollars, two months. NVIDIA H800 SXM5s– That's all there is to questioning this dream of the future.
“In looking at DeepSeek's new model, it's really impressive both in terms of how they've created a really robust open source model that performs this inference-time processing. and extremely powerful computing performance,” Satya Nadella, CEO of Microsoft and partner OpenAI, said at Davos last week. “We should take developments from China very seriously.”