Alright... you've probably seen this name everywhere for the past 24 hours: DeepSeek. And not far behind, a bunch of crypto boys sweating over their portfolios crashing. #DeepSeekImpact

So, what’s all the fuss about? Why is everyone freaking out? And most importantly, did this AI model really cause the markets to dump this weekend? Here’s my take 👇

DeepSeek-R1: The New AI Model That’s Shaking Everyone Up

So, what exactly is DeepSeek-R1? Well, it’s a ‘reasoning’ AI that launched just this past Monday, developed by a tiny Chinese team with under $6 million.

And clearly, they didn’t hold back. Unlike "classic" responsive AIs (like ChatGPT 4), which just spit out answers by searching through a massive database, DeepSeek-R1 thinks more like a human. Meaning, it reasons.

But it’s not just its brain that’s impressive—what really turns the tables is its ridiculously low cost and accessibility. A few stats for you:

Free for up to 50 messages per day, which is ridiculously affordable compared to ChatGPT Pro ($200/month).

Super lightweight—so optimized that it can run locally on an iPhone, no internet or heavy hardware required.

Amazing performance—Developed in 2 months with under $6M, it competes with the US giants... for a fraction of the price.

And the kicker: it’s open-source. Anyone can use it, adapt it, and even deploy it.

Result? Companies selling hardware like GPUs or premium subscriptions are starting to sweat.

But why did the markets crash?

Is DeepSeek-R1 really the only culprit of this carnage?

It’s clear that this AI spooked investors by shaking up the ecosystem:

NVIDIA GPUs at $30,000? Not really needed anymore.

OpenAI subscriptions? Now threatened by a near-free alternative.

High-end devices? Not necessary if an AI can run directly on your phone.

But zooming out a bit, there are other reasons for the crash: the Bank of Japan announced an interest rate hike, shaking up the markets.

Trump also revived his tariff threats against China, Canada, and Mexico, putting pressure on global trade. And as usual, crypto follows tech stocks in their downfall.

So, in short, DeepSeek-R1 played the troublemaker, but it’s really a mix of fear and macroeconomic factors that caused the crash.

Why this is (still) a good thing for you

Even though it caused some chaos in the markets, DeepSeek-R1’s arrival is actually great news for you:

It forces the giants to move, innovate, and lower their prices.

Alternatives are becoming more accessible, and AI is being democratized.

We’re getting closer to ultra-powerful AI that runs locally, without subscriptions or expensive hardware.

In short, DeepSeek-R1 shook up the status quo, and it’s exactly what was needed for AI to progress even faster.

In my opinion, long-term, this is bullish news for the entire ecosystem 😎