DeepSeek is the new player in the AI world that has put all the others to shame, and folks are loving it
People couldn't help but marvel at the stunt pulled by DeepSeek, and memes about its success started flooding the internet
With numerous companies introducing their own chatbots, the popularity of generative AI has surged astonishingly. To make you understand how much it's actually worth, let us drop a staggering statistic over here. As per Statista, the market size in the Generative AI market is projected to reach $62.72 billion in 2025!
Yup, you read that right. Now that the value of it has finally sunken in, let's look at how it has impacted the world and why folks are going gaga over the DeepSeek domination.
At this point, everyone is familiar with generative AI, and it has been observed that 45% of the US population surveyed is using generative AI. Considering its popularity, there's no wonder that tech companies are hard at work trying to compete with each other and develop the best one for people.
Well, if there are so many competitors out there, what makes DeepSeek different and why is everyone talking about it? First and foremost, DeepSeek's biggest advantage is that its chatbot is free to use without any limitations. To top it off, it's comparable with competitors considering facts like writing assistance, coding, brainstorming ideas, learning, and research.
DeepSeek AI, an application and its supporting models, was created by a Chinese AI, established by Liang Wenfeng in December 2023. To train their AI, DeepSeek used a large number of Nvidia's H800 GPUs. These chips are a bit slower than the top-of-the-line H100 GPUs, but they were specifically designed for the Chinese market before the US government restricted the sale of the most advanced chips to China.
This makes sense because the H800 chips were probably much cheaper than the newer, more powerful models like the H100 and H200. DeepSeek's success shows that you don't always need the biggest budget or the most expensive computer chips to make significant progress in AI. This has made some people question whether those super-powerful chips are really as important as we thought they were.
The same day DeepSeek's AI assistant became the most-downloaded free app on Apple's App Store in the US, it was hit with "large-scale malicious attacks" causing the company to temporarily limit registrations. The waves that this platform created had far-reaching effects.
It was reported that after news of DeepSeek’s achievements spread, U.S. markets sank yesterday, especially the tech-heavy Nasdaq. By the end of the day, the Nasdaq had lost $1 trillion! The majority of that loss came from a sell-off of Nvidia shares.
As per CNBC, Nvidia’s stock plummeted nearly 17% yesterday, which wiped almost $600 billion from its market cap. Other AI-adjacent stocks like chipmaker Broadcom Inc. fell over 17%, and OpenAI’s largest investor, Microsoft Corporation, fell over 2%. These and falls in other AI-related tech stocks helped account for that $1 trillion loss.
Turns out that it wasn’t just Nvidia that was hit by the so-called “DeepSeek selloff,” with shares of Apple, Microsoft, Amazon, Alphabet (Google), Meta, and Tesla all sliding as a result. However, despite the shock waves that it sent through Silicon Valley and its instant surge in popularity, folks were left questioning its censorship and privacy issues.
As per DeepSeek's privacy policy, the company stores data from users—including their date of birth, keystrokes, text or audio inputs, uploaded files, chat history, and other data—on servers located in China. This sparked some concerns about the supposed risks its ties to China posed to national security in the US.
This mindblowing platform has not only stirred the public but also sent previously established giants into a frenzy. Sounds quite enigmatic, doesn't it? Folks couldn't help but roast the other platforms, and looking at the humungous DeepSeek stats, we can understand their sentiment.
While writing this article, I was literally itching to try it out and see what the hubbub was all about. Have you given it a whirl yet? Also, which one of these memes about it destroying the other platforms did you like the most? Let us know in the comments below!
