Are we witnessing another breakthrough in the field of artificial intelligence? Yes, and what has been happening for the past few days on the subject of AI will certainly go down in gold in the history books of development and progress.
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Probably after this introduction, many have guessed what this is about. It is about the Chinese model of artificial intelligence, which has taken the whole world by surprise and which has turned out to be more advanced than anyone expected.
Nobody expected it
Until now, the synonym for AI was, of course, Chat GPT. From the moment it saw the light of day, through subsequent updates and its development, for many people it was the product from Open AI that was synonymous with the concept of artificial intelligence.
And just when no one expected it, the Chinese arrived on the scene with their DeepSeek model, the R1, which proved to be a breakthrough and put everyone in the artificial intelligence industry on edge.
The model, developed by Liang Wenfeng, was said to cost just $5.6 million. Barely, because when juxtaposed with the sums of money being handled in the context of how much Open AI has already spent many billions, of which the annual development, including the work on Chat GPT-4, is a cost of $5 billion!
Unprecedented capabilities
As it turned out, however, the amount of money spent is not decisive. Indeed, DeepSeek in the R1 model almost immediately made it to the top of the list of the most frequently and most downloaded applications, whether in Google Play or in the Apple Store.
But what is all the fuss about? According to the available information, the Chinese chatbook stands out with a much more advanced AI architecture, relying on huge data sets, and processing capabilities we have not seen before. R1 could be of unique importance in the context of any military simulation, as well as in large-scale offensive cyber operations. Needless to say, this is a great potential threat in terms of the most sensitive data
Experts around the world are already signalling that DeepSeek has the kind of real-time data processing capabilities that Open AI with its Chat has not yet reached. However, this is not the only advantage. The Chinese app has the ability to process the global structure of AI and adapts its analyses to the current data. This is another powerful advantage over the largest (until recently) player in the market).
Earthquake
DeepSeek's foray into the wide waters of global AI immediately had its huge impact on the stock markets. US technology companies started to lose heavily, and by several percent each.
Microsoft lost more than 3 per cent, Oracle lost more than 7 per cent, AMD found itself 5 points in the red, while Meta's shares slumped by 2 per cent. However, when it comes to the leader of the losses, this is where Nvidia takes the lead, whose shares at the start of the session had shrunk by as much as 12 per cent!
‘Bloomerg’ reports that the Chinese, with their model, led to the “evaporation” of more than one trillion dollars from the Nasdaq Composite. Of course, the repercussions of the events that occurred in the USA are also being felt in Japan and Europe. The Polish stock market has also suffered a ricochet, starting the new week with falls.
What is happening in the sphere of AI development clearly shows that the global clash of powers has moved into the virtual world for good. Whoever comes up with better solutions will very quickly gain a powerful advantage over their rival. After recent developments, it seems that the Chinese are, for the time being, several lengths ahead of the Americans.
