Posted on 01/27/2025 5:34:07 PM PST by SeekAndFind
Chinese startup DeepSeek - whose new low-cost AI model rattled tech stocks Monday - suffered a large-scale cyberattack, causing it to temporarily limit registrations.
Earlier in the day, DeepSeek said it was hit by outages on its website after its AI assistant became the top-rated free app in Apple's U.S. App Store and overtook ChatGPT in downloads.
DeepSeek claims it uses cheaper chips and less data, challenging the idea that advanced semiconductors, like those made by Nvidia, are needed to run AI applications.
That sent major tech stocks tumbling, with shares of Nvidia falling as much as 17.8% at one point Monday morning.
Brian Jacobsen is chief economist at Annex Wealth Management.
"This could really be a change in the script, a change in the narrative around artificial intelligence, where it's no longer about what has been called the picks and shovels [FLASH] that was like Nvidia as far as with the chips that they were selling and maybe even the data center providers. Now it's moved on from the picks and the shovels more to perhaps the refiners and the jewelers in that narrative, where it's more about what's the actual use case of the technology."
DeepSeek's popularity has also upended widely held views about U.S. dominance in the AI space and the effectiveness of Washington's export controls targeting China's advanced chip and AI capabilities.
Little is known about the company behind DeepSeek, a small Hangzhou-based startup founded in 2023, when search engine giant Baidu released the first Chinese AI large-language model.
Since then, dozens of Chinese tech companies large and small have released their own AI models, but DeepSeek is the first to be praised by the U.S. tech industry as matching or even surpassing the performance of cutting-edge U.S. models.
(Excerpt) Read more at yahoo.com ...
If China really did improve the model building algorithm by 50x, this just means that Trump’s Stargate instead of getting $500 billion of compute power, will get $500 billon x 50 = $ 25 trillion of compute power.
This is nothing more than a marketing scheme and a psyop against America. The market is 2% off its all time high. Most US stocks were up today. This was a targeted attack against the chip sector. It happened overnight during the Chinese session. And it has rebounded nicely since American markets opened.
This story is hilarious. All of a sudden a small Chinese company is said to have the best AI for a few million. Yet the AI still says everything China does is great. And everything Japan has done is horrible. Its not a real AI. Its just fake news.
Who in their right mind puts Chinese software on their computer?
RE: Who in their right mind puts Chinese software on their computer?
Millions of Western TikTok users, including Americans.
What are they teaching in our schools now-a-days? Certainly not rational, critical thinking skills. Sad, really sad but you are right.
My first thought this morning was Theranos, starring Elizabeth Holmes.
Chinese spyware. Chinese AI. WTH are people flocking to this garbage!?
I agree. Morons!
I don’t pretend to know much about computers other than “garbage in, garbage out”. Seems to me that the AI generated conclusive information we would be relying on is only good as the information being fed into it for a conclusion. Bias is present no matter who programs the computer. And, given it’s higher pedigree, it is more likely to be believed by those too lazy to do their own research and come to their own conclusions. I can see it being of tremendous value in scientific research roles but when applied to human behavior, not so much.
Nonsense. There was no Cyber attack. They use cloudflare so that’s ridiculous. They simply aren’t ready for prime time
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