The Chinese IA displaces the US markets and makes Silicon Valley tremble

The fears of upheaval in the golden race of artificial intelligence have shaken Wall Street following the emergence of a popular model similar to chatgpt from China, triggering turbulence forecasts for silicon valley and checkers. The spread of last week of the latest Deepseek model initially received limited attention, obscured by the establishment of the President of the United States Donald Trump the same day. However, on the weekend the chatbot of the Chinese artificial intelligence startup has jumped to become the most downloaded free app on the US apple app of Apple, replacing Openai chatgpt.

What really shook the sector was the statement of Deepseek that he developed his latest model, the R1, at a much less price of what the main companies are investing in the development of artificial intelligence, mainly on expensive chips and Nvidia software. This development is significant given that the boom in artificial intelligence, triggered by the release of chatgpt at the end of 2022, prompted Nvidia to become one of the highest capitalization companies in the world. The news triggered a huge impact wave in the US tech sector and asked an ‘existential’ question for the sector: the technology giants should continue to invest hundreds of billions of dollars in artificial intelligence when a Chinese company can apparently Produce such a comparable model in such an economic way? Deepseek was a punch in the stomach for Washington and its priority to hinder China while maintaining American technological dominance.

Trump’s reaction was quick. From the Gop meeting in Florida, the president said that the release of Deepseek “should be an alarm bell for the American sectors, which we must focus on the competition to win”.

The story comes against the background of the push of the US government to ban the Chinese Tiktok in the United States or to force its sale. David Sacks, Trump’s councilor for artificial intelligence and important technological investor, said that Deepseek’s success justified the decision of the White House to cancel the executive orders of the Biden era that had established safety standards for the development of intelligence artificial. These regulations “would have paralyzed the American artificial intelligence companies without any guarantee that China would follow the example”, which obviously would not have done, wrote Sacks on X.

On the same wavelength Adam Kovacevich, CEO of the commercial group of the Chamber of Progress technological sector: “Now the main concern for artificial intelligence must be to guarantee victory (of the United States)”. The technological and ally investor of Trump Marc Andreesen said that “Deepseek R1 is the sputnik momentk of artificial intelligence”, referring to the launch of 1957 of the first artificial satellite of the earth by the Soviet Union.

The situation is particularly worthy of noteworthy since, as a Chinese company, Deepseek does not have access to the cutting -edge of Nvidia used to train artificial intelligence models that feed chatbots such as chatgpt. The exports of the most powerful technology of Nvidia are blocked by order of the United States government, given the strategic importance of AI’s development.

“If China is rapidly recovering ground compared to the United States in the running to the AI, then the Economy of the AI ​​will be turned upside down,” Kathleen Brooks, director of research at XTB, in a note to customers, warned. The CEO of Microsoft Satya Nadella intervened on social media hours before the opening of the markets to reject the concerns on the AI ​​produced at low cost, affirming that a less expensive age was good for everyone.

But last week at the World Economic Forum in Davos, Nadella warned: “We should take a lot, very seriously the developments from China”. Microsoft plans to invest 80 billion dollars in the AI ​​this year, while on Friday Meta announced at least 60 billion dollars of investments.