The launch of DeepSeek V3 has sent shockwaves through the US stock and crypto markets. Word that the AI model built by Chinese startup DeepSeek is superior to its American counterparts has made the US markets and AI industry see red.
Not only is DeepSeek the most resource-efficient AI model the world has seen, but it outperforms the likes of ChatGPT 4o, Claude, and Llama. And that isn’t even the most scary part. DeepSeek offers superior results at a fraction of the cost of competitors like OpenAI, Google, and Meta.
While OpenAI has been raising $18B with the goal of plowing it into massive data centers and other infrastructure, DeepSeek has built a super-efficient model for a mere $5.5M. This single move has shattered the myth that AI is a capital-intensive domain reserved for the big players.
AI Tokens Take a Tumble
Investors are worried that DeepSeek’s cost-effective model could disrupt the current AI landscape, leading to increased competitive pressure on established play ..
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