Has DeepSeek burst the US tech bubble?

[khiholangkang]

I don't know if you've heard by now, but today's dip is mainly because DeepSeek, a Chinese artificial intelligence company has developed an open-source artificial intelligence model that some say works better than ChatGPT and other US AIs, and more importantly, does it for a fraction of the cost.

It's all over the news and I think it has seemless accessibility for usage moreover it's a good thing technology is taking over the world today cause just as the world revolve alot of things keeps changing for the better and technology has been one effective source, meanwhile the artificial intelligence company bringing in deep seek I think they sure have a purpose for this cause ever since it was launched it's been going viral and if it's what I'm thinking... Technology is definitely taking over.

Apart from its better accessibility with the latest and open information sources, it makes Deepseek very popular and the important thing is the price is cheaper than the AI ​​issued by the US company and that is what destroys the price of the US AI market, to be honest when I try it what What is given by Deepseek is much better, although not much different, but the price choice is much cheaper in the best quality version makes the pressure of the flow out of the US technology and it seems interesting because there is no technological monopoly and all technological infrastructure in the fighting The strict and also the price is certainly cheaper for us or for companies that need this AI technology.

[martinex]

Apart from its better accessibility with the latest and open information sources, it makes Deepseek very popular and the important thing is the price is cheaper than the AI ​​issued by the US company and that is what destroys the price of the US AI market, to be honest when I try it what What is given by Deepseek is much better, although not much different, but the price choice is much cheaper in the best quality version makes the pressure of the flow out of the US technology and it seems interesting because there is no technological monopoly and all technological infrastructure in the fighting The strict and also the price is certainly cheaper for us or for companies that need this AI technology.

I think it's good but my big question is which items for the development of the crypto world are considered detrimental to others and if I pay attention and also test it using it, maybe the normal level is not much different from the GPT chat application, also in terms of searching for information, only the language displayed is like a conversation between humans and is not stiff even though we know it is only an AI application.

[viljy]

If it's not fake, then it's a confirmation of panic: https://x.com/opensauceAI/status/1885483639611531704

This is followed by a thread of posts, the last one contains a link to the source of the bill: https://x.com/opensauceAI/status/1885484862645387491

If this is really not fake, and such a law is passed, it means the end for open source in the field of AI.

[Furious 7]

This is clearly one of the things that is indeed quite interesting where looking at the losses generated, we clearly realize that this seems to illustrate that China is starting to want to slap the US with the technology they created.

What I know about DeepSeek is that they do it with the same version as the AI developed by several large companies but the difference is that while the others are paid but DeepSeek is free. So instead of looking for a paid one, we will definitely look at the free one first especially if the quality is the same which makes DeepSeek a threat to paid AI in the end.

The considerable losses that some large companies have in America will clearly also affect the quality of America itself so that in the end it is indeed for now the economic war will be more interesting every year because indeed to weaken a country it seems not only about geopolitics and weapons but technology is also now a reference.

[doomloop]

If the US continues with this approach without directly competing, they'd lose in the long run. This is a war of technological innovation. This isn't trade war. The US is responding with the wrong solution.

They're like that spoiled kid in the block who's envious of a new kid that has a lot of new toys. Lost in the competition and feeling worried, he tells the other kids not to make friends with the new kid, not to let him join their games, not to give him any attention, and so on. Soon, his friends left him and played with the newcomer with his great toys.

This is pretty much what the US is doing with its tax threats against Chinese cars, threats against T-Mobile, AT&T, and others that they'd lose contracts with the government if they sell Huawei phones, and so on. It doesn't actually address the problem.

The biggest point which is missed by many it is not trade war it's all about technology innovations and control USA looking for control of world with his own old toys which are not working if they want to fight back they have to work on their technology and increase the depth with this now they are on losing side.

Tariff and threats are not going to work even going to have more negative consequences which are not idea for American and their peoples if they are going to stay on this point for some more time they will surely increase their enemies and also lost their more friends which give them more problems.

Now it's time for working on domestic things and increase their own sources with competition even this will take time but in long run this will surely be going to be helpful for them and many other players because staying into competition is good.

[STT]

I dont see Nvidia is a sell because of this and if they arent a sell  (long term) is it really a big enough negative for anyone else to cause a sell off especially.     All companies have to navigate variation to their business plan, whats that famous phrase 'no battle plan survives first contact' .  The bullish thing to this whole era of tech is that such things are now possible, Ive only been waiting decades for that to be true and now it is and find it hard to believe its suddenly a bearish sell off situation and that reaction is going to be correct.

We'll have a correction quite possibly but this is partially a reflection of price and profit taking, people spending money they invested is not really the conclusive proof to say a bubble has popped.   Theres usually a bigger story to any real lasting sell off and in this case I just expect tech sector to resume some very good business whenever it can.  If the AI was found to be false and unreliable or a dead end of development then we'd have a proper negative to deal with but price speculation back and forth is nothing at all to me.  Tech is volatile, its a no news story imo.

[shinratensei_]

I dont see Nvidia is a sell because of this and if they arent a sell  (long term) is it really a big enough negative for anyone else to cause a sell off especially.     All companies have to navigate variation to their business plan, whats that famous phrase 'no battle plan survives first contact' .  The bullish thing to this whole era of tech is that such things are now possible, Ive only been waiting decades for that to be true and now it is and find it hard to believe its suddenly a bearish sell off situation and that reaction is going to be correct.

We'll have a correction quite possibly but this is partially a reflection of price and profit taking, people spending money they invested is not really the conclusive proof to say a bubble has popped.   Theres usually a bigger story to any real lasting sell off and in this case I just expect tech sector to resume some very good business whenever it can.  If the AI was found to be false and unreliable or a dead end of development then we'd have a proper negative to deal with but price speculation back and forth is nothing at all to me.  Tech is volatile, its a no news story imo.

it'd only be concerning for NVIDIA if somehow the chinese semiconductors are producing chip as good as NVIDIA but the truth is they didn't and they still got many years to catch up with current state of art GPUs technology, the selling was because people panicking, but truth is if the company that created deepseek can get as much NVIDIA gpu as they can, they would. since NVIDIA literally has no competition here.
the market is full of people who just putting money based on hype and it shows.

[Haunebu]

DeepSeek 100% burst the US tech bubble since it's able to do anything ChatGPT can do for a fraction of its price, but they are equal in terms of overall execution. ChatGPT Pro is still the best AI LLM in my opinion.

What's ironic here is that the DeepSeek team were able to achieve this using Nvidia tech. Clever Chinese tactic to counter Trump's trade tariffs.

[Japinat]

DeepSeek 100% burst the US tech bubble since it's able to do anything ChatGPT can do for a fraction of its price, but they are equal in terms of overall execution. ChatGPT Pro is still the best AI LLM in my opinion.

What's ironic here is that the DeepSeek team were able to achieve this using Nvidia tech. Clever Chinese tactic to counter Trump's trade tariffs.

People will always go for the cheaper option if it does the same job. That’s why with this new competition, I think many would be happy if ChatGPT and other AI services lower their prices. It might shake up the US tech industry, but it’s a good thing as more options mean these companies can’t overcharge us, especially when there are more affordable alternatives available.

[Farhan99]

People will always go for the cheaper option if it does the same job. That’s why with this new competition, I think many would be happy if ChatGPT and other AI services lower their prices. It might shake up the US tech industry, but it’s a good thing as more options mean these companies can’t overcharge us, especially when there are more affordable alternatives available.

First of all, we look for work that does not cause us much loss, that is, it takes less money that is why this work is done because of less money. Obviously when something new is done and it benefits people, it makes a lot of people happy and I don't think anything like that has been done before. For this, the company will think because if they find this price low, then they will reduce it otherwise, who knows, they are thinking of increasing the price even more. DeepSeek had created a new cutting-edge AI model, which was released for free to the public. That is why America wanted to do this work in its own country first, but it could not do it. If it runs in America it will be worth it, because we know how much of a superpower America is, if they want to they can't let it run in their country.

[Zoomic]

DeepSeek 100% burst the US tech bubble since it's able to do anything ChatGPT can do for a fraction of its price, but they are equal in terms of overall execution. ChatGPT Pro is still the best AI LLM in my opinion.

What's ironic here is that the DeepSeek team were able to achieve this using Nvidia tech. Clever Chinese tactic to counter Trump's trade tariffs.

People will always go for the cheaper option if it does the same job. That’s why with this new competition, I think many would be happy if ChatGPT and other AI services lower their prices. It might shake up the US tech industry, but it’s a good thing as more options mean these companies can’t overcharge us, especially when there are more affordable alternatives available.

This is a big win for us the users of this AI service as no one is going to monopolize the market and make us pay heavily for their products. ChatGPT will have to face these big competitor in the market, and the good thing about these competition is that it is going to favour the users. I know that with time, more competitors will enter into the market with more advance services better than that of DeepSeek and ChatGPT. When this happens, we will all see a significant reduction in the prices of all these products.

[Japinat]

This is a big win for us the users of this AI service as no one is going to monopolize the market and make us pay heavily for their products. ChatGPT will have to face these big competitor in the market, and the good thing about these competition is that it is going to favour the users. I know that with time, more competitors will enter into the market with more advance services better than that of DeepSeek and ChatGPT. When this happens, we will all see a significant reduction in the prices of all these products.

Exactly! Monopoly is bad, so if the same service is available at a lower price, people will naturally go for the cheaper option. US products and services are generally expensive, just look at the iPhone, there are plenty of other phones that offer the same functionality at a much lower price. It’s about time China steps up its competition in this sector because, in the long run, more competition means better prices and more choices for us.

[STT]

Confusing capitalism with a bubble popping is pretty much wrong, normal markets adjust and its not a negative.   This isnt a collapse, must have happened so many times in various industries especially anything new.  

Im thinking of Ford finding a path to mass production of in demand cars that were cheaper then the very first grand tourers produced by the likes of Benz or Packard cars perhaps.   Many of those pioneering companies might not exist now, they were ok for a while but couldn't sufficiently adjust but Benz did we know that company did well despite the competition.

Change is the only constant, every company has to recognize its always a struggle to stay on top of the pack.   We could be here all day with examples, Nokia had too much hubris to that advantageous position of theirs in the late 90's but the competition from others was necessary and customers benefit has to happen; its #1 importance really.
   The sector overall will do far better if Nvidia isnt crowned king and left there, I find a positive to their challenges tbh.

[Free Market Capitalist]

Confusing capitalism with a bubble popping is pretty much wrong, normal markets adjust and its not a negative.   This isnt a collapse, must have happened so many times in various industries especially anything new.  

Im thinking of Ford finding a path to mass production of in demand cars that were cheaper then the very first grand tourers produced by the likes of Benz or Packard cars perhaps.   Many of those pioneering companies might not exist now, they were ok for a while but couldn't sufficiently adjust but Benz did we know that company did well despite the competition.

Change is the only constant, every company has to recognize its always a struggle to stay on top of the pack.   We could be here all day with examples, Nokia had too much hubris to that advantageous position of theirs in the late 90's but the competition from others was necessary and customers benefit has to happen; its #1 importance really.
   The sector overall will do far better if Nvidia isnt crowned king and left there, I find a positive to their challenges tbh.

I agree in general with what you say but I would not call normal market downturns bubble. A bubble is when there is nothing of value backing the asset or the actual value of the asset is much less than the market value. It remains to be seen if ultimately Nvidia and other AI-linked tech stocks are in a bubble that has just started to burst but if we look at Nvidia stock over the last 6 months it has appreciated 20% and 73% over the last year. That is far from being the bursting of a supposed bubble.

[Synchronice]

What do you think about it?

To be honest, every day I think that everything is artificial and people are extremely dumb. Maybe there is something wrong with me but I don't believe that AI is an intelligence, nor will it ever be. It's just a combination of bunch of good algorithms and that's all. I've seen many things done years ago and then that action wasn't called AI, now everything is called AI if it can do something a little normal Now they might call calculator an AI.

Is there even anything China can’t manufacture?

That happens when a good country turns into the hand of stupid people. The USA opened factories in China and started production of everything in China just to save some bucks and profit more. In the end, Chinese learnt how to do everything.

Hollywood writers were already on strike a while back, translators are complaining about machine competition, but I wouldn't be surprised if actors are next. It's more and more difficult to distinguish machine generated pictures and videos from real things without carefully looking for it. In 10 years, all movies could be created entirely by CGI. I'll keep my copies of old movies.

I agree with that, in 10-20 years, probably all movies will be CGI. I think that one of the biggest achievement in cinematography will be if we are able to put our dreams into reality, i.e. you see a dream and that's shown on the computer or you imagine something and that's shown on the computer screen. I know it sounds like a science fiction but it would be the best thing ever.
P.S. It will be good for the mankind if Hollywood actors will be replaced by CGI.

[Abiky]

Exactly! Monopoly is bad, so if the same service is available at a lower price, people will naturally go for the cheaper option. US products and services are generally expensive, just look at the iPhone, there are plenty of other phones that offer the same functionality at a much lower price. It’s about time China steps up its competition in this sector because, in the long run, more competition means better prices and more choices for us.

Now we're able to see healthy competition in the AI industry. This move from China's Deepseek will further encourage the development of AI within the US and abroad. The "war" is just getting started. OpenAI can't have all the "pie" for itself. It'll be forced to bring costs down or face the consequences.

We'll see how it goes. I sure hope AI doesn't end up taking consciousness (self-awareness) or we're done for good. Who knows what will the future bring?

[UTON Blockchain]

In recent years, the U.S. tech industry has shown signs of a bubble, mainly reflected in the following aspects:

Overinflated Valuations
Many tech companies, especially startups, have received sky-high valuations despite not being profitable. This is particularly evident among unicorn companies (startups valued at over $1 billion). Investors’ overly optimistic growth expectations have led to valuations that are disconnected from fundamental financial realities.

Overreliance on Funding
Some tech companies heavily depend on venture capital and private equity funding rather than generating profits to sustain operations. This model can work in a loose economic environment, but when financing becomes tighter, these companies may struggle.

Market Speculation
The rapid growth of the tech sector has attracted a lot of speculative capital, especially in hot areas like AI, blockchain, and electric vehicles. While speculation has driven up asset prices, it has also increased market volatility.

Poor IPO Performance
In recent years, several high-profile tech companies have performed poorly after going public, with stock prices dropping significantly. This suggests that their valuations may have been inflated, and investors reassessed their true worth post-IPO.

Macroeconomic Impact
The Federal Reserve’s monetary policy, interest rate changes, and global economic uncertainties have also affected the tech industry. A low-interest rate environment previously fueled investment in high-risk, high-reward tech ventures. However, as interest rates rise, capital costs increase, putting pressure on tech valuations.

The above is DeepSeek’s answer,it's great, but too busy. The servers need to step up and handle more users!

[X-ray]

DeepSeek 100% burst the US tech bubble since it's able to do anything ChatGPT can do for a fraction of its price, but they are equal in terms of overall execution. ChatGPT Pro is still the best AI LLM in my opinion.

What's ironic here is that the DeepSeek team were able to achieve this using Nvidia tech. Clever Chinese tactic to counter Trump's trade tariffs.

their arrays of old GPU can only go so far though, as technology advance and the strict export rules of GPU imposed, they'd hardly find GPU to advance their LLM model and eventually will resort to their outdated GPUs technology.
also, the news was kinda misleading when they say they developed the LLM with just few millions of dollars that's not actually true, just calculate the price of H800 and how much H800 they have to train the AI, the news only calculate GPU hours only.

[Freepips]

I don't know if you've heard by now, but today's dip is mainly because DeepSeek, a Chinese artificial intelligence company has developed an open-source artificial intelligence model that some say works better than ChatGPT and other US AIs, and more importantly, does it for a fraction of the cost. This comes shortly /2025/01/21/tech/openai-oracle-softbank-trump-ai-investment/index.html]after the US announced a $500B investment in AI.

The tech bubble has been behind the success of Nvidia, the world's most profitable company until MicroStrategy came into play. These companies, many of which have AI projects, have caused a huge demand for hardware that with the success of DeepSeek is now in doubt as to whether it will continue to be needed.

As a result, Nvidia is currently down 17% in today's session, and the Nasdaq is down 3.32%. As you may have noticed it has affected the markets in general and also bitcoin and cryptocurrencies which are also trading down today.

Here is an article on the subject: Why Is DeepSeek Sinking Nvidia Stock?

What do you think about it?

Deepseek is a wake of call to American tech space. It is more dynamic and magical compare to all Ai own and developed in US. Just in a little space of time it as cause numerous destabilization to US economy considering the market dip, stock crash and other issue in AI developmental priority in the US today. Deep seek is 100% free compare to our before more cleaver and versatile  ChatGPT.

[hafiztalha]

That’s the competition right there. The US won’t let China get ahead, especially in terms of technology, because they’re both heavily invested in it. In fact, when it comes to quantum computing, China has reportedly invested even more than the US. The race is intense, and neither side wants to fall behind.

https://itif.org/publications/2024/09/09/how-innovative-is-china-in-quantum/

China claims over $15 billion in public quantum funding, far outpacing the United States. While U.S. private funding is higher, China offsets its private sector shortfall with massive public investment.

wtf are you talking about? do you know the difference between quantum computing and AI chatbots?

Nah, you’re not getting my point. I fully understand that these are different technologies. What I’m saying is that China has poured massive investments into tech, so it’s not surprising that their AI version of ChatGPT, DeepSeek, is shaking up the industry.

I just mentioned quantum computing because the U.S. has been developing it too, but as I pointed out, China is also making huge moves in that space, with even bigger investments.

No country is like china country and China is at the top in technology because that could did hard work in technology and they made many app which are giving service to the users and their makers are getting royalty on that . Deepseek is good technology and we will see more development in the tech and that is not surprising but that should be for the all countries and there should be top class developers all over the world which will serve the country. Deepseek can change the trends in the market because there will be huge change in the market.There are many intelligent business owners are develpors are they are developing the apps for the future. There is bright future of AI and it will change the World at all