DeepSeek Disrupting AI and the Stock Market!

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DeepSeek Situation: Key Points

What is DeepSeek?

  • A Chinese AI company founded in 2023 by Liang Wenfeng in Hangzhou, Zhejiang.
  • Developed a cost-efficient, open-source large language model comparable to OpenAI's ChatGPT.
  • Operates despite U.S. sanctions on advanced AI chips.


Market Impact:

  • DeepSeek's app became the most downloaded on Apple's App Store, surpassing ChatGPT.
  • Triggered a sharp decline in U.S. tech stocks when is was announced (27 Jan 25), including:
    • Nvidia (-17%, $600 billion loss)
    • Microsoft and Tesla also affected


Key Threats:

  • Censorship: Avoids politically sensitive topics (e.g., Tiananmen Square protests, human rights issues).
  • Security & Privacy: Data stored on servers in China; concerns over surveillance, foreign influence, and disinformation.
  • Economic Risks: Disrupts the narrative on high investment needs for AI infrastructure, potentially reshaping U.S. tech valuations.


Questions Raised:

  • How will U.S. and global tech respond to this competitive threat?
  • What are the implications for data privacy and international AI ethics?
  • Could China lead the next major AI development phase?


If you want to learn how to capitalize on AI for work checkout my AI Strategy course for business leaders. Also available on Udemy 

The below Video provides a great quick summary


The start of this video from TechLead also has some good information about the impact of DeepSeek


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Kind regards

Michael James

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