Efficiency instead of gigantism: What's behind DeepSeek's success – Donald Trump called DeepSeek a “wake-up call” – Image: Xpert.Digital
Trump, Deepseek and the AI crisis: A wake-up call for the USA?
AI Earthquake: How Deepseek is shaking up global tech markets
A technological earthquake has shaken the global technology world – not geologically, but digitally. The Chinese startup Deepseek has sent shockwaves through the financial markets with its latest AI innovation, the "Deepseek R1" model. This development has not only shaken up tech giants but also raises the question: What changes does artificial intelligence (AI) face, and who will triumph or lose in this new era?
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Deepseek R1: The disruptive force from China
With its Deepseek R1 model, the Chinese startup has launched a technology that offers a new dimension of efficiency and cost-effectiveness. Unlike previous AI models, Deepseek R1 operates with reduced capacity, drastically lowering energy consumption while achieving impressive performance. This technology challenges the multi-billion-dollar investments of established companies and leads analysts like Edison Lee of Jefferies to question the profitability of such expenditures.
“Deepseek R1 demonstrates that it is possible to make AI systems not only more powerful, but also more sustainable and cost-effective,” said an industry expert. This innovation could fundamentally change the rules of the game for global AI development and has already sent shockwaves through the industry.
DeepSeek's breakthrough:
- It was developed for only about 6 million dollars – a fraction of the cost of comparable US models.
- It runs on less powerful and cheaper chips.
- The app quickly rose to become the most downloaded free app in the US App Store.
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Donald Trump's reaction
US President Donald Trump described DeepSeek as a "wake-up call" for American industry. He also sees opportunities in it:
- It could force US companies to become more efficient and innovative.
- Trump views the development as “positive” because it shows that AI advances are possible even at lower costs.
Impact and Outlook
These events have raised questions about the sustainability of the high levels of AI investment in the US. Experts are divided on the issue:
- Some see DeepSeek as a serious threat to US dominance in the AI sector.
- Others, such as analysts from Bernstein, believe the market reaction is exaggerated and still see a need for AI infrastructure.
This development could have far-reaching consequences for the global AI landscape and the technology industry. It remains to be seen how US companies and policymakers will respond to this challenge in the long term.
USA: Tech giants under pressure
The impact of Deepseek R1 is particularly noticeable in the US. On the Nasdaq, the hub for technology stocks, prices plummeted by 3.6 percent, while the Dow Jones Industrial Average fell by one percent. Companies that have invested heavily in AI are especially hard hit
- Nvidia (NVDA): The chipmaker, whose products are crucial for AI development, suffered a 16 percent drop in its share price. The company's value fell by over $500 billion, although Nvidia still boasts a market capitalization of around $3 trillion. The previous AI boom was abruptly halted, as Deepseek R1 calls into question the necessity of Nvidia's powerful chips.
- Broadcom (AVGO) and Marvell Technology (MRVL): Both semiconductor companies saw their share prices fall by 12 and 14 percent, respectively. Deepseek's more efficient technology threatens their market share, particularly in areas such as storage solutions and broadband communications.
- Microsoft (MSFT), Alphabet (GOOGL), and Meta (META): These tech giants also lost between 2 and 3.5 percent of their market value. Their massive investments in AI products could be jeopardized by Deepseek's disruptive technology.
Overall, the US technology sector was devalued by about $1 trillion.
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Germany: AI shockwaves hit European markets
German technology markets were not spared the effects of the AI revolution. Shares of major technology companies such as Aixtron, Siltronic, and Infineon experienced declines of between 5 and 10 percent.
- Aixtron (AIXA): The leading supplier of compound semiconductor equipment experienced significant losses as demand for these technologies is challenged by the efficiency of Deepseek R1.
- Infineon (IFX): As a specialist in power electronics, automotive and industrial applications, Infineon is under pressure because it is unclear how the new technology will affect its product lines.
- Siemens Energy (ENR): The share price of Siemens Energy suffered a particularly drastic decline, plummeting by 20 percent. Uncertainty surrounding the impact of AI on the energy sector and the profitability of future investments led to a massive loss of confidence.
Japan: Chip industry in focus
The effects of Deepseek R1 were also felt in Japan. Companies like Tokyo Electron and Advantest, both key players in the chip industry, suffered share price declines of between 5 and 10 percent. Tokyo Electron, a supplier of semiconductor manufacturing equipment, and Advantest, specializing in semiconductor test systems, could be affected in the long term by the declining demand for conventional chip technologies.
Global Interconnections: The Role of the EU and South Korea
Although no concrete data exists on the direct impact in the EU and South Korea, it is expected that these regions will also be affected by the shockwaves. Companies in the semiconductor, cloud computing, and AI development sectors, in particular, are likely to feel the consequences of Deepseek's disruptive technology. The global interconnectedness of tech markets means that an innovation like Deepseek R1 can trigger global chain reactions.
Profound implications for the AI landscape
Deepseek R1 could mark a turning point in AI development. With lower operating costs and higher efficiency, this technology could democratize AI, allowing smaller companies to participate in the field. At the same time, it poses enormous challenges for established players.
“Reducing complexity does not mean we have less powerful models, but rather that we are setting new standards,” explained an industry analyst.
For established tech giants, adapting their strategies will be essential. This could mean:
- Increased investment in research and development: Companies need to develop new technologies to keep pace with deepseek innovations.
- Strategic partnerships: Collaboration with startups or innovative companies could be crucial to leveraging synergies.
- Acquisitions: Buying promising startups could be a way to gain access to new technologies.
Opportunities and risks for the future
Although the short-term effects of Deepseek R1 appear negative, this development also offers long-term opportunities. More cost-effective and efficient AI technologies could reduce the costs of AI applications and open up new possibilities. Advances in areas such as medicine, education, and environmental protection are conceivable.
“The AI earthquake shows us that innovation is not limited to the big players. The future belongs to those who are flexible enough to adapt,” said a renowned economist.
The new era of artificial intelligence
The so-called AI earthquake of Deepseek has severely tested global technology markets. But it also demonstrates just how dynamic and unpredictable the world of artificial intelligence is. The future will depend on how companies respond to these challenges and what innovations emerge from this disruptive phase. One thing is certain: Artificial intelligence will continue to profoundly change our world.
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