Thursday, July 24, 2025
No Result
View All Result
Indonesia Sentinel
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
No Result
View All Result
Indonesia Sentinel
No Result
View All Result
ADVERTISEMENT
Home Tech & Science

China’s AI Breakthrough DeepSeek Shakes Wall Street and the Tech Industry

by Raidi
2025-01-29
in Tech & Science
A A
DeepSeek

DeepSeek (Pinterest)

Share on FacebookShare on TwitterShare on Whatsapp
ADVERTISEMENT

Jakarta, Indonesia Sentinel — China’s artificial intelligence (AI) technology, DeepSeek R1, has sent shockwaves through the tech industry and Wall Street. On Monday, January 27, U.S. stock markets suffered sharp declines following the debut of DeepSeek, with chipmaker Nvidia losing nearly $600 billion in market value.

The breakthrough comes from DeepSeek, a startup founded just a year ago. The company has developed a revolutionary AI model that investor Marc Andreessen has dubbed a “Sputnik moment for AI.”

Releeased in January 20, DeepSeek R1 has posed a direct challenge to the dominance of U.S. tech giants in the AI sector. Remarkably, R1 rivals the capabilities of well-known AI systems like OpenAI’s GPT-4, Meta’s Llama, and Google’s Gemini — but at a fraction of the cost.

RelatedPosts

Dreadhaunt Review, Latest Indonesia’s Horror Games

Scientists Create 3D-Printed Regenerative Material Using Blood to Accelerate Healing

According to CNN Indonesia, DeepSeek claims to have spent only $5.6 million to support its foundational AI model, a stark contrast to the hundreds of millions, even billions, of dollars U.S. companies invest in their AI developments.

ADVERTISEMENT

Even more surprising is that DeepSeek’s success comes despite years of U.S. efforts to restrict China’s access to high-powered AI chips, citing national security concerns. DeepSeek’s development proves that low-cost AI models can be built using relatively low-powered chips.

The Visionary Behind DeepSeek

DeepSeek was founded in late 2023 by Chinese hedge fund manager Liang Wenfeng, now often referred to as China’s equivalent of Sam Altman. Liang is a prominent advocate for AI technology and a key investor in cutting-edge research. His hedge fund, High-Flyer, focuses on advancing AI innovation.

Like other AI startups, such as Anthropic and Perplexity, DeepSeek has introduced several competitive AI models over the past year, gaining industry attention. The company’s V3 model helped elevate its profile, despite concerns over its adherence to China’s strict content regulations on sensitive political topics.

However, DeepSeek R1, which was unveiled at the end of last year and officially launched last week, has garnered unprecedented attention. Its low operational costs and open-source nature make it a potential game-changer in the AI landscape.

What is DeepSeek

According to BBC, DeepSeek is a free AI-powered chatbot that closely mirrors the functionality and design of OpenAI’s ChatGPT. Like its rivals, it can handle a variety of tasks, though debates continue about its performance relative to other models.

What sets DeepSeek apart is its underlying AI model, R1, which boasts 670 billion parameters—making it the largest open-source large language model to date, according to Anil Ananthaswamy, author of Why Machines Learn: The Elegant Math Behind Modern AI.

R1 reportedly rivals OpenAI’s O1 model, released late last year, in key areas such as mathematics, coding, and logical reasoning.

Unlike traditional large language models, R1 is a reasoning model, designed to generate responses incrementally. This approach mimics human problem-solving and idea-processing methods. By using less memory than its competitors, R1 reduces the cost of completing tasks, offering a significant advantage in the resource-intensive AI landscape.

DeepSeek’s open-source model also allows other companies to test and refine its technology, which has fueled its rapid adoption. As a result, the DeepSeek app surged to the top of app store rankings, surpassing OpenAI’s ChatGPT. By Monday, the app had been downloaded nearly two million times.

A Threat to U.S. AI Dominance

DeepSeek’s emergence poses a significant threat to U.S. AI companies, given the technology’s high energy demands and development costs.

To support AI advancements, leading U.S. tech firms have made substantial investments in infrastructure. For example, some companies have acquired nuclear power plants to meet the electricity demands of their AI models.

Read Also:

AI Consumed Almost All Human Knowledge, Elon Musk: We’re Running Out of Data

Meta recently announced plans to spend more than $65 billion this year on AI development. Meanwhile, OpenAI CEO Sam Altman has said the industry will require trillions of dollars of investment to support chip production and power data centers.

DeepSeek’s low-cost, open-source model could disrupt this high-cost paradigm, potentially reshaping the future of artificial intelligence.

 

(Raidi/Agung)

Tags: AIChinaDeepSeek
ADVERTISEMENT

Related Posts

Indonesia Prepares Presidential Regulation and National Roadmap to Govern AI Development

Indonesia Prepares Presidential Regulation and National Roadmap to Govern AI Development

2025-07-22

Jakarta, Indonesia Sentinel -- Indonesia is taking major steps to regulate the use of artificial intelligence (AI), with the government...

ChatGPT Agent

OpenAI Unveils ChatGPT Agent, Capable of Handling Complex Tasks on Behalf of Users

2025-07-22

Jakarta, Indonesia Sentinel -- OpenAI has introduced a powerful new capability for ChatGPT, called the ChatGPT Agent, an advanced feature...

Meta

Meta Cracks Down on Content Reuploaders, Deletes 10 Million Facebook Accounts

2025-07-21

Jakarta, Indonesia Sentinel -- Meta is intensifying its efforts to crack down on users who reupload content created by others,...

Fanged Frog

Scientists Discover Two New Species of Fanged Frog in Indonesia’s Meratus Mountains Borneo

2025-07-17

Jakarta, Indonesia Sentinel -- A team of international and Indonesian researchers has identified two new species of fanged frog in the...

Medical Cannabis

Indonesia Still Conducting Cannabis Research for Potential Medical Use

2025-07-16

Jakarta, Indonesia Sentinel -- Indonesia is still conducting research to evaluate whether cannabis can be scientifically proven to have medical...

Starlink Indonesia

Starlink Halts New User Registrations in Indonesia Amid Capacity Limits

2025-07-16

Jakarta, Indonesia Sentinel -- SpaceX’s satellite internet service, Starlink, has stopped accepting new users in Indonesia due to capacity constraints,...

YouTube Monetization

YouTube to Enforce Stricter Monetization Rules on “Inauthentic Content” Starting July 15

2025-07-15

Jakarta, Indonesia Sentinel -- YouTube is updating its YouTube Partner Program (YPP) monetization policy to crack down on what it...

Israel Intelligence mobile applications

Popular Mobile Applications Found out to be Linked to Israel Military Intelligence, Spark Global Concerns

2025-07-11

Jakarta, Indonesia Sentinel -- A number of widely used mobile applications installed on millions of Android and iPhone devices worldwide...

Medical Journal Use AI

Study Finds AI Use in Over 2 Million Medical Journal Articles in 2024, Raising Concerns Over Scientific Writing Integrity

2025-07-11

Jakarta, Indonesia Sentinel -- A large-scale study has revealed that 13.5 percent, or roughly 2 million medical journal articles published...

Children Gaming

Indonesia Reaffirms Commitment to Protect Children in Growing Gaming Industry

2025-07-08

Jakarta, Indonesia Sentinel -- Indonesia’s Minister of Communication and Digital Affairs (Komdigi), Meutya Hafid, reaffirmed the government’s commitment to safeguarding...

Load More
Next Post
Soekarno Hatta Airport Flooding

Flooding Disrupts Access to Soekarno-Hatta Airport, Operations Return to Normal!

Popular

  • Mentawai Tribe

    Mentawai Tribe Tooth Sharpening Tradition as a Symbol of Beauty, Culture, and Sacrifice

    0 shares
    Share 0 Tweet 0
  • Suku Mante, Mysterious Tribe Living in the Vast Forests of Aceh

    0 shares
    Share 0 Tweet 0
  • Indonesia’s Life Expectancy Rises to 74.15 Years in 2024, Statistics Agency Reports 

    0 shares
    Share 0 Tweet 0
  • TikTok Shop GMV 2024 Hits $32.6 Billion, Indonesia Second Largest Contributor

    0 shares
    Share 0 Tweet 0
  • Indonesia Boasts an Outstanding Number of Islands, How Many?

    0 shares
    Share 0 Tweet 0

Recommended

sritex

Lukminto Family’s Business Empire: From Sritex to Hospitality Ventures

9 months ago
Eid al-Fitr THR

Many Companies Have Yet to Pay THR Ahead of Eid al Fitr, Could Faces Sanctions!

4 months ago
ADVERTISEMENT

Indonesiasentinel.com is an independent online news portal committed to providing accurate, in-depth, and up-to-date news about Indonesia. Since 2021, we have been a trusted source for millions of readers seeking relevant and reliable news.

Part of:

Information Page

  • About
  • Editorial
  • Privacy Policy
  • Disclaimer
  • About
  • Editorial
  • Privacy Policy
  • Disclaimer

Contact

  • contact@indonesiasentinel.com
© 2021 Indonesia Sentinel

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science

© 2024 Indonesia Sentinel