DeepSeek, a Chinese AI firm promising to make access to artificial intelligence cheaper than American competitors, caused stock market tech stocks to tumble today. From the Associated Press:
"Wall Street is tumbling Monday on fears that the market’s winners who have feasted on the artificial-intelligence frenzy are under threat from a competitor in China that can do similar things for much cheaper.
The S&P 500 was down 1.6% in morning trading. Big Tech stocks took some of the heaviest losses, with Nvidia down 11.2%, and they dragged the Nasdaq composite down 2.7%. The Dow Jones Industrial Average, which has less of an emphasis on tech, was holding up better with a dip of 123 points, or 0.3%, as of 9:50 a.m. Eastern time.
The shock to financial markets came from China, where a company called DeepSeek said it had developed a large language model that can compete with U.S. giants but at a fraction of the cost. DeepSeek’s app had already hit the top of Apple’s App Store chart by early Monday morning, and analysts said such a feat would be particularly impressive given how the U.S. government has restricted Chinese access to top AI chips." (our emphasis)
Note that last sentence, indicting the Chinese have developed their own (or tapped someone else's) AI chip technology.
We're just days after the Malignant Loser's announcement of the Stargate project and South African fascist oligarch Elon "Kekius Maximus" Musk announcing a major build-out of infrastructure for his xAI company in Atlanta. We're delighted that our newly-minted MF-loving fascist oligarchs have some serious concerns over China's move that will hold prices down and deny those oligarchs higher profits from their AI endeavors.
Read it may not be the chips but the programmers, which would suck for the chip makers.
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