@everyone please read this. This takes a while.

DeepSeek's claim of creating an AI chatbot at a fraction of the cost of its Western rivals is likely a strategic move by China to disrupt the U.S.'s dominance in AI for several reasons:

1. Historical Pattern of Disinformation:

China has a history of making grand technological claims that do not hold up under scrutiny, as seen with their previous false assertions about cracking extreme ultraviolet lithography for advanced semiconductor manufacturing. These claims serve to instill doubt in Western technological superiority and disrupt market confidence, even if they lack substance. DeepSeek’s cost and performance claims fit this pattern, casting doubt on whether U.S. companies truly need their massive investments to maintain leadership in AI.

2. Economic Warfare and Psychological Disruption:

By publicizing a low-cost alternative, DeepSeek creates uncertainty in the AI market, leading to drops in the stock prices of major U.S. AI companies. This undermines investor confidence in the U.S.'s AI ecosystem while redirecting attention toward China as a potential alternative. Even if the claims are exaggerated or false, the damage to U.S. companies' market positions is real.

3. Exploiting Market Sensitivities:

The timing of DeepSeek's announcement coincides with increased scrutiny on AI-related costs, particularly for hardware and power consumption. U.S. firms have been spending billions annually on GPUs and data center infrastructure, and DeepSeek's supposed cost-effective approach casts doubt on whether such investments are necessary. This narrative not only pressures Western companies to defend their expenditures but also challenges the assumption that U.S. companies have unassailable technological and financial advantages.