DeepSeek AI Causes NVIDIA Market Crash, Largest Loss in History
Nvidia's losses surged with nearly $600 billion in market capitalization wiped out due to the efficient dominance of DeepSeek AI.
Kapanlagi.com - DeepSeek AI, an advanced chatbot born from China, is now poised to shake up the world of artificial intelligence as a strong competitor to ChatGPT! With significantly lower operational costs and support for open-source technology, DeepSeek has successfully captured global attention as an ideal cost-effective alternative for both individual users and companies.
DeepSeek's advantages lie not only in cost efficiency but also in its capabilities in programming, data analysis, and logical problem-solving. This further strengthens its position amid the dominance of AI technology led by American giants. However, DeepSeek's journey is not entirely smooth. As a product of China, this technology must face serious challenges related to political censorship and data privacy.
Nevertheless, the launch of DeepSeek marks a new chapter in the global competition of AI technology, paving the way for more inclusive and diverse innovations. Summarized by Kapanlagi.com from various sources on Tuesday (28/1/2025), here is a review of the advantages and disadvantages of DeepSeek AI that are worth noting!
DeepSeek AI comes with a myriad of advantages that are sure to capture the attention of many. With a development cost of only $5.6 million, DeepSeek is far more economical compared to ChatGPT, which has spent billions of dollars. Not only that, but its subscription package starts at just $0.50 per month, making it very affordable for users around the world.
Its analytical capabilities are also noteworthy; DeepSeek is designed to handle various complex tasks such as coding and data analysis, even managing to outperform GPT-4 and Llama 3.1 in the Codeforces competition. Furthermore, its Mixture-of-Experts (MoE) architecture technology enables efficient data processing by only activating relevant parameters, making it incredibly powerful with 671 billion parameters.
Even more interesting, DeepSeek is open-source, providing freedom for developers around the world to access and develop this technology. All these advantages make DeepSeek a smart choice for those seeking a cost-effective yet high-quality AI solution.
Although DeepSeek AI offers a variety of advantages, there are several drawbacks that cannot be overlooked. First, data privacy issues come to the forefront, as user information is stored on local servers in China that are subject to local laws, raising concerns for those from countries with strict privacy regulations.
Additionally, as a product originating from China, DeepSeek must comply with the government's strict regulations regarding information censorship, which can limit the chatbot's freedom in discussing sensitive topics. No less important, the risk of AI hallucination also looms, where DeepSeek, like other AI models, sometimes provides incorrect or inaccurate answers, making additional verification a necessity.
Lastly, access to certain features of DeepSeek may be restricted in specific countries due to differences in local regulations. All these weaknesses present challenges that DeepSeek must overcome to build trust among global users.
DeepSeek's advantages in terms of cost efficiency and performance have captured the attention of the global market, making it a real threat to Western AI giants like OpenAI. The launch of DeepSeek even caused semiconductor company stocks in the US, including Nvidia, to plummet by up to 17% in a single day.
However, behind the enticing innovation, there are serious concerns regarding privacy and censorship that have caught the attention of Western countries. Alexander Wang, CEO of Scale AI, firmly referred to DeepSeek as a "major alarm" for American technology, emphasizing that although DeepSeek offers a lot of potential, the challenges of building user trust must be addressed promptly.
DeepSeek stands out thanks to its advantages in cost efficiency, sharp analytical capabilities, and the flexibility offered by open-source technology.
One of the main highlights that emerged is the concern regarding data privacy, where users feel threatened by the potential misuse of personal information. In addition, the issue of political censorship is also a concern, considering the possibility of restrictions on freedom of expression. No less important, the risk of spreading inaccurate information poses its own challenges, which can mislead the public and trigger confusion amidst the overwhelming flow of information.
With a very budget-friendly subscription rate, starting at just $0.50 per month, DeepSeek presents itself as a smart and economical choice for individual users who want to explore the world of information without having to dig deep into their pockets.
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