Breaking: China AI bot triggers US market crash, $500bn Plunge in major tech firm
DeepSeek – the low-cost chatbot built by a Chinese AI firm – has caused shockwaves on Wall Street, with Nvidia losing more than $500bn in market value .Shares in other major US technology firms have fallen steeply in value since markets opened on Monday
The emergence of the Chinese made AI-app DeepSeek comes on the heels of a major announcement by President Donald Trump to advance AI development in the US.DeepSeek was reportedly developed for a fraction of the cost of its rivals, raising questions about the future of America’s AI dominance and the scale of investments US firms are planning
Last week, Trump unveiled Stargate – a $500bn AI venture that will be financed and carried out by three companies: OpenAI, SoftBank and Oracle. The project is meant to accelerate AI development in the US, with Trump hailing it “the future of technology”.
Sam Altman of OpenAI called it “the most important project of this era”.
The money will be used to construct data centres in the US to support AI development. Those centres will be used by OpenAI to develop artificial intelligence technology that can be used in a wide range of sectors.
Tesla’s Elon Musk criticised the venture shortly after it was announced, writing on X that the three companies don’t have the money to fund the ambitious project.
Altman hit back at Musk, replying, “wrong, as you surely know”.
Both Musk – who helped found OpenAI – and Altman had been embroiled in a public feud since Musk broke away from the company in 2018.
More at www.bbc.co.uk
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Tom
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Of course Trump’s $500 billion boondoggle will be funded by the US taxpayer as is just about everything else. Big tech goons are a bunch of greedy cheapskates.
China’s DeepSeek cost about 1/33rd of that of chatGPT and has none of the crappy DEI and silly wokiness. This is why China will win the A/i race. And Heaven help us when they do.
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VOWG
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I laughed while listening to a fellow question that AI. It quickly answer the questions and then deny it had ever given that answer as the answers were not favorable for China. What bloody joke we have become.
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JFK
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I don’t know how things are in China, but I know how things are in the western world.
When you impose illogical taxes on small businesses and only let huge multinational enterprises to be able thrive, then it is stupid to expect any major breakthrough in anything.
Breakthroughs happen out of love for what you are working on, and out of luck.
The more corporations you have competing in an industry, the better it is.
When you only have 4 giants, all bought by blackrock, how do you get anything good?
The people that work for them are not really interested in making those mega-corporations any richer. And their lead scientists are counted on the fingers of a single hand. So, less brains and less incentive, less inspiration. Money is the only incentive for their workers, but knowing that they are easily replaceable inside the company, why would they give their entire love and energy on the given targets?
The entire western policy is anti-freedom on all fronts (economic, social, spiritual, political, etc). You cannot breathe without getting a tax, or a legal penalty, or a bureaucratic chaos, or another kind of legal or illegal intervention.
It is worse than China’s communism. At least in China you know what to expect and you are safe as long as you praise the ruling party…
Not to mention the woke crap Tom mentions above…
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