DeepSeek burst into the financial markets yesterday like an elephant in a china shop. Many technology companies had sharp falls in their values. This was partly caused by the latest perhaps exaggerated increases. But the question is what does DeepSeek have to create this trauma in the markets.
Image source: DeepSeek Web
The simple answer is that it does the same as Chatgpt but much cheaper. In reality yes and in reality no. The most important thing is not only its development, which is an act of faith to believe that they have developed it with the money they say. The important thing is that it does not need as many resources as its American version. It does not need those very expensive Nvidia chips and it does not consume all the energy in processes. And that changes everything since it eliminates the monopoly that was expected in this field.
Does this mean that the lucrative AI business has been destroyed? I don't think so. Rather, I think that this will expand and accelerate the business much faster than we thought.