Rise of Deepseek crashing United States Stock Market l KH Podcast

The recent emergence of Deep Seek, a Chinese artificial intelligence (AI) company, has significantly shaken the foundations of the American tech industry. By releasing a free AI assistant that operates efficiently with fewer resources, Deep Seek has caused an estimated loss of $560 billion from U.S. tech companies, including giants like Nvidia, Alphabet, Microsoft, Amazon, Meta, and Tesla. This moment is being compared to the "Sputnik moment" of the Cold War, signaling a critical shift in global technological power dynamics.
The reaction from American investors and politicians underscores an urgent need to reassess the tech landscape, particularly as the U.S. attempts to maintain its technological supremacy over China.Experts from Cambridge University, Professor Gina Neff and Verity Harding, highlight the implications of Deep Seek's success.
They note that America's strategy of tightly controlling advanced chips to limit China's tech growth has failed, as Deep Seek has demonstrated that performance can be achieved with fewer resources. This realization raises questions about the sustainability of the "hyperscale" approach that many U.S. tech companies have adopted, which relies heavily on vast amounts of data and energy.
The discourse also touches on the ethical considerations surrounding data privacy and the geopolitical ramifications of using AI developed in countries like China.
Questions arise about whether consumers should choose AI products based on national origins or underlying technological capabilities. The conversation underscores the importance of innovation, adaptability, and a balanced perspective on technology's role in society.
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