Yesterday we had a spike down in our U.S. AI universe (NASDAQ fell over 600 points and stocks like NVDA fell 16% in value) when it was announced that a Chinese company called Deepseek has developed AI in a faster and cheaper way than our American companies.
DeepSeek’s founder has at least two reasons to celebrate this week. Alongside the Chinese Lunar Year, the company had the App Store’s most downloaded app with its AI agent, while the US market melted down due to the new model being so accurate and cheap to train compared to comparable models from the likes of OpenAI.
China continues to beat us with good products we will all be using but doing it at a cheaper price.
Then again, most of us will not be able to take advantage of the savings because Trump is likely to tariff us out of the picture.