Performing and cheaper than chatgpt: Chinese chatbot gives tech shares striking, but is struggling with cyber attacks

The news from Deepseek raises questions about the American dominance in AI. For example, the Chinese start-up does not use the most advanced chips from Nvidia. Analysts believe that this can turn the entire supply chain upside down in the sector, especially now that a severe competition is raging between the US and China.

As a result, the technology-oriented stock market index Nasdaq fell 3.4 percent. Nvidia’s share fell by no less than 12 percent. The Chinese AI shares are doing remarkably well, so that the Hang Seng Tech index in Hong Kong recorded 2 percent higher on Monday.

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“The product of Deepseek is very problematic for the statement that the considerable capital expenditure and operational costs that Silicon Valley has incurred are the most suitable way to approach the AI ​​trend,” Nirgunan Tiruchelvam, analyst at Aletheia Capital, said to the Bloomberg press agency. “It questions the enormous means that have been spent on AI.”

R1

Deepseek is very successful with the R1 model. That is an advanced language model that can reason independently. It also shows all steps in the thinking process to the user. It can be used to solve complex mathematical issues, coding and analyzing data. The model was launched at the end of January and achieves similar performance with the O1 model of the American OpenAi.

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The big difference, however, is the cost price: private users pay 200 dollars every month at OpenAI to gain unlimited access to O1. The R1 model is free at Deepseek. Professional users who want access to the API of Deepseek – an environment to allow software to communicate directly with the model – pay no less than 27 times less than with competitor OpenAi. And moreover, the DeepSek OpenSource model is: everyone has free access to the source code.

Stargate

The US is also investing in artificial intelligence. For example, the new US President Donald Trump announced the ‘Stargate’ project shortly after his inauguration, in which at least $ 500 million will be invested in AI. Alphabet, the parent company of Google, will also pump 1 billion extra pumps in AI developer Anthropic. At the same time, the output of powerful computer chips is restricted from the US to China.

The Chinese catch -up movement and nervousness on American fairs shows that the battle for the cheapest and smartest model has erupted. Although there are also serious questions about Deepseek: for example, asking about the Tiananmenprotest and thorny geopolitical issues such as a possible Chinese invasion of Taiwan.

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Cyber ​​attacks

Whether it has to do with Monday’s stock market fluctuations is not clear, but Deepseek writes on its website to be the target of “large -scale, harmful cyber attacks” on his services. As a result, people who want to register for his AI-Chatbot hinders, it is said. Existing users can log in normally.

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