On Monday, the American stock markets, driven by the announcement of China that it had created a cheap and cheap intelligence machine. It is the largest cloud so far to close the enthusiasm of the Western West to artificial intelligence, and question the effectiveness of American export controls and billions of dollars flowing by the United States in expensive advanced technology.
Deepseek Startup says in China, AI’s assistant uses less advanced chips than its competitors, and costs less training. Unlike billions of West, the Chinese model was developed for only $ 5.6 million, at one estimate.
“Will we spend $ 500 billion to reach the borders so that China can find a way to copy our domestic duties on the dollar?” to request Gregory AllenDirector of the Wadhwani Ai Center at the Center for Strategic and International Studies, on a Podcast Friday.
Why did we write this
The latest technology company in China challenges investment strategies and concepts about the amount of experience needed to succeed in artificial intelligence. If history is working, the market may soon witness a dramatic superiority of players in artificial intelligence.
On Monday in Wall Street, the shares of Ai Company fell strongly. The price of NVIDIA, the pioneer in artificial intelligence chips, decreased by about 17 %, as deserted investors evaluated the possibility that Chinese players aim to threaten US technical profits. The S& P 500 index decreased by approximately 1.5 %, and the heavy NASDAQ decreased by 3 %.
But experts warned against panic. Analysts say it is important not to exaggerate the Chinese threat. The new Deepsik model of artificial intelligence is the real achievement and the Beijing noise. It explains China’s ability to simplify American models, create a less and less powerful computer chips to provide answers that compete with America’s most expensive models. Deepseek said last week that its latest model could compete with an Openai’s Chatgpt version four months ago.
In many ways, the Debceic model is equivalent to the ingenuity of the manufacture of China. In this case, Deepseek put its product on the public domain, which means that anyone can use it for free. By Monday, the free free app has become the Apple App Store.
Export control, advertising tools test
Deepseek places China as a quick follower of American technology. Analysts say this is far from challenging the position of the United States at the forefront.
“Anxiety is exaggerated because, based on the available data, we believe that the Deepseek model … depends on the largest basis models that will be developed first,” according to Bank of America/Merrill Lynch’s research on Monday. In other words, they cannot be leaders.
Technology also acts as a propaganda tool for Beijing. By showing China’s ability, the regime hopes to prove that US export controls do not work. But analysts point out that they only show the failure of export controls for the year 2022 during the era of President Joe Biden. These controls have been tightened since then.
Perhaps it is not a coincidence that Dibsik announced that it had put the artificial intelligence program in the public domain last week, as Mr. Biden released three new rounds of export restrictions aimed at increasing China’s ability to reach the most advanced chips.
“Since the land of freedom, America-not China-the world should lead in developing artificial intelligence,” President Biden said in a farewell speech on January 15.
Analysts say export controls cannot stop the flow of technology. But they can make it difficult and more expensive for China to compete and keep pace with technology, especially with the joint project between the president and private by President Donald Trump, which can invest up to $ 500 billion in Amnesty International’s infrastructure.
The general domain and silver bars of American companies
While placing the Deepseek model in the public domain was a short -term advertisement, it may bring in reverse results. American companies now have the Chinese code to simplify their search engines. With better reaching strong chips, Americans can create models of artificial intelligence close to the edge at a much lower cost and offer them free of charge.
What model will the global market adopt? Technology that may give the Chinese government access to its data? Or the products of the western private sector where, supposedly, geopolitical risks are less?
The biggest question that Dibsic asks is for investors. If many companies can work with the most cheaper artificial intelligence, what is the amount of investment that should flow to the latest technology?
Nowadays, these investments lose money. If the date is any evidence, it will take several years to convert a profit in an intense race that may increase the leaders to one or two. Think of Microsoft Windows on Personal Computers. Or Google search on the web.
Sure one thing. The cloud of suspicion can grow on the investor horizon if investors start assessing the promise of artificial intelligence more carefully.
