DeepSeek shakes global markets with low-cost AI model

In Indonesia, traditional dragon and lion puppet performances filled the capital city of Jakarta to celebrate the Lunar New Year on January 29, 2025. As millions of people with Chinese ancestry gathered for the festivities, drummers and puppet performers created a vibrant atmosphere. The dragon puppets, which could reach lengths of up to 65 feet, were intricately operated by numerous performers, making their displays a highlight of the celebrations. The event not only reflected cultural heritage but also demonstrated the community's commitment to ushering in the new year with joy and prosperity. Meanwhile, in the realm of technology, DeepSeek, a Chinese startup, took a break for the Lunar New Year holidays after significantly affecting global markets with its innovative AI models. Earlier this week, it gained attention by releasing AI models that challenged well-established companies like OpenAI and Google. The cost-effective AI models were produced with older Nvidia chips, as the U.S. had restricted the export of more advanced systems to China. Despite their significant impact, the company's headquarters in Hangzhou reported a quiet week as workers celebrated the holidays. Following the release, U.S. stock markets witnessed considerable fluctuations, with shares of companies like Nvidia experiencing dramatic losses. The startups' breakthrough in AI development raised concerns within the U.S tech industry about competition from China and acted as a wake-up call for American corporations. As the international discussions around technology and global markets buzzed, DeepSeek's achievements showcased the changing landscape of artificial intelligence development, especially in light of the constraints placed on emerging technologies.