Ever heard of DeepSeek? Until last week, probably not. But this small Chinese startup just made a massive impact. In one move, they disrupted the AI industry and wiped $593 billion off Nvidia’s market value.
How? By proving Silicon Valley wrong. They built AI models as powerful as OpenAI’s—but for a fraction of the cost.
What’s Happening?
- Smarter Spending: OpenAI needs thousands of Nvidia’s high-end chips to run its models. DeepSeek found a way to use far fewer, slashing expenses.
- A New Approach: Their method, called “mixture of experts,” activates only the necessary resources for each task. It’s lean, efficient, and powerful.
- Market Shock: Nvidia’s stock plunged. Big Tech is scrambling to understand what this means for the future of AI.
Why This Matters
If DeepSeek’s approach works long-term, AI development could change forever. Companies may no longer need massive budgets and endless chips to compete. The tech giants will have to adapt—whether they like it or not.
DeepSeek didn’t just challenge the status quo. They might have rewritten the rules of AI.