Shock in the stock market as open-source Chinese AI, DeepSeek produced for MILLIONS challenges the dominance of Open AI, produced for BILLIONS

Jan 27, 2025

These are the headlines

Nvidia lost nearly $600 billion in market value Monday as tech stocks plunged amid fears that Chinese artificial intelligence firm DeepSeek leapfrogged U.S. dominance in AI development.

The Nasdaq Composite, which tracks the country's largest tech firms, plunged more than 3%. The Dow ended up nearly 300 points after falling earlier in the day, and the S&P 500 tumbled almost 1.5%.

The sell-off was sparked by advances claimed by China’s DeepSeek, whose outstanding qualities became evident this weekend. The open-source model was first released in December, when the company said it took only two months and less than $6 million to create. Those claims would be far less than the hundreds of billions of dollars that American tech giants such as OpenAI, Microsoft, Meta and others have poured into developing their own models, fueling fears that China may be passing the U.S. in the scale and efficiency of their AI investments.

DeepSeek’s app is now the top free app in the Apple App Store, pushing OpenAI’s ChatGPT into second place.

https://www.nbcnews.com/business/markets/tech-stocks-react-chinas-deepseek-sparks-us-worries-ai-race-rcna189394

DeepSeek Hit With Large-Scale Cyberattack, Limits Registrations: Who Is Behind The Malicious Attacks

DeepSeek, a rapidly growing Chinese artificial intelligence (AI) startup, announced on Monday that it would temporarily limit new user registrations due to “large-scale malicious attacks” on its platform. However, existing users will be able to continue logging in and accessing the service as usual.

This move comes as DeepSeek has been gaining significant attention, positioning itself as a potential rival to major players in the AI industry, including OpenAI’s ChatGPT and Google’s Gemini. The company has been making waves, especially after its AI Assistant app dethroned OpenAI’s ChatGPT to become the most-downloaded free app on Apple’s App Store in the U.S. on Monday, further fueling excitement around the company.

https://www.newsx.com/world/deepseek-hit-with-large-scale-cyberattack-limits-registrations-who-is-behind-the-malicious-attacks/

This is what the situation appears to be on the surface

When I first learned about DeepSeek I downloaded it and just asked one question, where did covid-19 come from? The answer was along the lines that it came from a wet market but some are speculating that it came from a lab leak at Wuhan.

An immediate lie.

Then we have this -

But we need to look deeper than this.

The Health Ranger, Mike Adams, is very excited

Earth-shattering developments in the AI space mean that China is on track to achieve "superintelligence" before anyone else, instantly putting it in a position to dominate and remotely control the infrastructure of nearly every nation.
Once this is achieved, China will demand the unconditional surrender of the United States of America. If Trump is in office, he will have no choice but to sign it.
The USA has already lost the AI race, largely thanks to Democrats pushing "woke" education, mass indoctrination, censorship, stupidity and mass mental illness across the U.S. landscape for decades.
This has put the USA too far behind to compete with China on AI, and Trump's "Stargate" project is precisely the wrong idea because it only throws money at corrupt, centralized corporations that will waste half a trillion dollars and only produce cognitively impaired "woke" AI models that censor the truth about vaccines and other topics

See his video on this, On what day will Trump sign an UNCONDITIONAL SURRENDER of the USA to China?

I am in at least partial agreement with David Icke when he says this:

This Chinese DeepSeek AI v US/Western AI is another perceptual diversion. I keep saying - watch the OUTCOMES not the rhetoric and drama. And what is the outcome of this China v West AI 'contest'? The rapid expansion and use of AI worldwide. The Global Cult works through ALL countries. It doesn't give a damn about this or that country - it is the global OUTCOME that it seeks.

And there is this from Brother Nathaniel -

The factions of evil are already at war, with one another and their self destruction is inevitable.

What are the geopolitical implications?

I found this article which was very interesting

https://analyticsindiamag.com/global-tech/nvidia-controls-a-whopping-95-of-the-ai-chip-market/

I did a little research (and thinking) from my armchair and asked Ask AI (ie. a conventional western search engine)

Does China and therefore DeepSeek depend on Nvidia for AI chips?

To understand whether China, specifically through the company DeepSeek, depends on Nvidia for AI chips, we need to analyze several factors including the technology landscape, the specific needs of DeepSeek, and Nvidia’s market position.

1. Overview of DeepSeek’s Technology: DeepSeek is a Chinese artificial intelligence company that has recently gained attention for its AI applications. The company was founded in July 2023 by Liang Wenfeng and has developed an AI model that reportedly rivals those from major U.S. companies like OpenAI. Notably, DeepSeek has utilized reduced capability chips from Nvidia to build its models.

2. Nvidia’s Role in AI Development: Nvidia is a leading manufacturer of graphics processing units (GPUs) that are widely used in AI development due to their ability to perform parallel processing tasks efficiently. These GPUs are essential for training large language models and running complex algorithms that underpin modern AI applications.

3. Dependency on Nvidia: While DeepSeek has made significant advancements in creating an AI model with lower operational costs and fewer chips than competitors, it still relies on Nvidia’s technology for its operations. According to statements from Nvidia, even though DeepSeek has achieved impressive results, it still requires “significant numbers of NVIDIA GPUs” for inference tasks. This indicates that while DeepSeek may have developed innovative methods to optimize performance using fewer resources, it cannot completely eliminate its reliance on Nvidia’s hardware.

4. Implications of Export Controls: The geopolitical landscape also plays a crucial role in this dependency. The U.S. government has imposed export controls on advanced semiconductor technologies to China, which affects the availability of high-performance chips like those produced by Nvidia. This means that while DeepSeek can utilize existing stockpiles or alternative methods, any future developments may be constrained by these restrictions.

5. Conclusion: In summary, China and therefore DeepSeek do depend on Nvidia for AI chips, particularly for the performance required in their applications despite their recent technological advancements that allow them to operate with fewer resources.

It also says…

NVIDIA chips are primarily manufactured by Taiwan Semiconductor Manufacturing Company (TSMC) and South Korea’s SK Hynix, leveraging their advanced semiconductor fabrication technologies and specialized memory solutions.