#DeepSeekImpact DeepSeek is a Chinese artificial intelligence (AI) startup that has recently attracted global attention with its latest large language model (LLM), DeepSeek V3. The model was developed at a cost of around $5.6 million, far lower than the hundreds of millions to billions of dollars other companies have spent on similar models.

DeepSeek’s success in creating an efficient AI model has had a significant impact on the technology and financial markets. Shares of companies like Nvidia have fallen sharply, losing nearly $600 billion in market value, as investors worry that DeepSeek’s efficient approach could reduce demand for high-performance AI chips.

However, some analysts argue that this decline may be overdone. They argue that by lowering the cost of AI development, innovations like DeepSeek’s could broaden the adoption of AI technology overall, which could ultimately increase demand for related hardware. Additionally, electronics manufacturing companies such as Dixon Technologies, Kaynes Technology, and Netweb Technologies also saw their shares drop by 20% due to concerns about the impact of DeepSeek’s efficient approach on AI hardware demand.

Overall, DeepSeek’s breakthrough highlights the potential for innovation in more efficient and cost-effective AI development, and its impact on the technology industry landscape and global financial markets.