AOL - Investors hammered technology stocks on Monday, sending the likes of Nvidia and Oracle plummeting, as the emergence of a low-cost Chinese artificial intelligence model cast doubts on dominance of U.S. companies in this sector. Startup DeepSeek last week launched a free assistant it says uses less data at a fraction of the cost of incumbent players' models, possibly marking a turning point in the level of investment needed for AI.
Tech-heavy Nasdaq slid 3.1%, while the S&P 500 dropped 1.8%. Dominant AI chipmaker Nvidia slumped 11% in early trading, leading losses among heavyweight tech stocks that had powered Wall Street's main indexes to record levels. Microsoft shares tumbled 3.8%, Meta Platforms 3.1% and Alphabet 3.3%. More
Newsweek - DeepSeek AI is the brainchild of Liang Wenfeng, a former hedge-fund manager who transitioned to AI development in 2023. The platform's flagship model, DeepSeek-R1, was launched this January and quickly climbed to the top of the U.S. Apple App Store, surpassing ChatGPT in downloads.
DeepSeek's appeal lies in its free-to-use model for consumers, underpinned by its R1 reasoning engine. This is said to integrate reinforcement learning to achieve high performance with minimal computational resources. - More
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