Bitcoin is flying below 98k, Ether is aiming for $3000, L2 tokens are falling, Trump is already worth $26 and Melania $2.4. Liquidations are already over half a billion dollars. A breakdown of what happened to the market in the last 24 hours.
1️⃣Китайский AI wobbles the market
The sharp drop in AI sector stocks and tokens is caused by the creation of a new neural network from DeepSeek, which introduced a competitor to ChatGPT - DeepSeek-R1. Everything in the best Chinese tradition: fast, powerful and cheap Chinese copy that kind of outperforms the competition in key tests.
The results are staggering:
😀Training cost: $100m → $5m
😀Needed GPUs: 100,000 → 2,000
😀 API cost: 95% cheaper
😀Can run on gaming GPUs instead of server hardware
DeepSeek's data shows that its model outperforms OpenAI, with a $6 million budget and only a fraction of the number of graphics processing units (GPUs) that OpenAI uses.
The main blow may be to NVIDIA, because their business model is built on selling super-expensive GPUs at high margins. And DeepSeek demonstrates that it is possible to use more budget versions of GPUs.
The release of a low-cost neural network adds pressure to the market and forces investors to reevaluate investments in the U.S. AI sector. AI development is becoming more affordable, competition is increasing dramatically, and at the same time costs are coming down significantly.
