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China’s DeepSeek AI is hitting Nvidia where it hurts
The cheaply-developed AI has shaken up Silicon Valley.
Downloads for the app exploded shortly after DeepSeek released its new R1 reasoning model on January 20th, which is designed for solving complex problems and reportedly performs as well as OpenAI’s o1 on certain benchmarks. R1 was built on the V3 LLM DeepSeek released in December, which the company claims is on par with GPT-4o and Anthropic’s Claude 3.5 Sonnet, and cost less than $6 million to develop. Investors and analysts are now wondering if that’s money well spent, with Nvidia, Microsoft, and other companies with substantial stakes in maintaining the AI status quo all trending downward in pre-market trading.
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