The DeepSeek artificial intelligence application has positioned itself as one of the most downloaded recently, generating a significant impact on international markets. This event unleashed financial chaos, especially for the company Nvidia, which experienced significant losses, reaching nearly $589 billion, marking one of the largest losses in history.
The rise of DeepSeek has led Nvidia to lead a trend of selling in tech stocks, as the application's low-cost proposition has reignited concerns about the excessive investment of large American companies in the development of artificial intelligence. DeepSeek, a Chinese firm, offers comparable performance at a considerably lower cost, which has fueled its popularity.
The most recent artificial intelligence model released by DeepSeek last week has been widely recognized as competitive with those of other major companies in the sector such as OpenAI and Meta Platforms Inc. This open-source application was created by Liang Wenfeng, propelling it to the top of the Apple Inc. App Store.
Jefferies analysts expressed concerns about the potential disruption of the current artificial intelligence business model, which heavily relies on high-end chips and computing power. This concern arose from DeepSeek's disruptive proposal in the market.
Liang Wenfeng, born in 1985 in Guangdong, is the founder of DeepSeek. After obtaining a master's degree in electronic engineering from Zhejiang University, Wenfeng invested $1.4 million to found the company. From his early years of study, Wenfeng dedicated himself to exploring automated trading tools and eventually ventured into creating complex learning algorithms that revolutionized the financial industry in China.
His success with the quantitative hedge fund High Flyer, which adopted artificial intelligence as a main approach, led him to receive the Golden Bull Fund award in 2018. In May 2023, Wenfeng decided to embark on the DeepSeek project, aiming to disrupt the artificial intelligence paradigm and reduce operational costs. This approach has generated concerns in the artificial intelligence industry as it promises to radically change the current landscape.