DeepSeek Plunges Tech Stocks

This is a US news story, published by BGR, that relates primarily to AI news.

US news

For more US news, you can click here:

more US news

News about Ai research

For more Ai research news, you can click here:

more Ai research news

BGR news

For more news from BGR, you can click here:

more news from BGR

About the Otherweb

Otherweb, Inc is a public benefit corporation, dedicated to improving the quality of news people consume. We are non-partisan, junk-free, and ad-free. We use artificial intelligence (AI) to remove junk from your news feed, and allow you to select the best tech news, business news, entertainment news, and much more. If you like this article about Ai research, you might also like this article about

other AI hardware companies

. We are dedicated to bringing you the highest-quality news, junk-free and ad-free, about your favorite topics. Please come every day to read the latest US AI companies billions news, other AI firms news, news about Ai research, and other high-quality news about any topic that interests you. We are working hard to create the best news aggregator on the web, and to put you in control of your news feed - whether you choose to read the latest news through our website, our news app, or our daily newsletter - all free!

software innovations DeepSeek

BGR

•

Technology

DeepSeek isn't as great as it seems and won't help China beat the US to AGI: Dario Amodei

Summary

Nutrition label

74% Informative

Chinese startup DeepSeek tanked tech stocks on Monday after releasing its AI model.

In a research paper, the company revealed that it trained R1 using software innovations rather than having access to massive hardware resources like OpenAI and other US companies.

The claim that software optimization can replace hardware is what hurt the stock market, especially NVIDIA and other AI hardware companies.

However, I said the worries were overblown. Software optimization can’t fully replace hardware capabilities.

Amodei predicts that AGI will happen in 2026-2027 and will require “ millions of chips, [and] tens of billions of dollars (at least)” He argues that for the latter to happen, sanctions must continue so that China can’t easily buy or smuggle the millions of chips needed for AGI development.

The US and its allies might take a commanding and long-lasting lead on the global stage.

VR Score

Informative language

Neutral language

Article tone

semi-formal

Language

English

Language complexity

Offensive language

not offensive

Hate speech