# Deepseek sends Asia stocks on a rollercoaster ride

- Link: https://www.thailand-business-news.com/tech/191741-deepseek-sends-asia-stocks-on-a-rollercoaster-ride
- Published: 2025-01-27T21:02:36+07:00
- Author: Li Zhong

Chinese AI startup DeepSeek has recently emerged as a significant challenger to 
U.S. tech giants, demonstrating AI models that claim to offer comparable performance
at a fraction of the cost. The latest news indicates that DeepSeek’s app has climbed
to the top of the iPhone charts, causing concerns among tech stocks and raising 
questions about the dominance of American technology companies.

**DeepSeek’s Impact on Tech Stocks **

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The emergence of DeepSeek, a cutting-edge AI-driven analytics platform, has sent
ripples through the tech industry, particularly in the stock market. Investors and
analysts alike are closely monitoring its influence on the valuation and performance
of tech companies.

 * On January 27, 2025, Bloomberg reported that DeepSeek’s emergence has led to 
   a potential $1.2 trillion drop in tech stocks, questioning America’s technological
   dominance.
 * Nasdaq futures have slumped as concerns over DeepSeek’s performance and cost 
   efficiency have triggered market reactions.

DeepSeek’s ability to process vast amounts of data and deliver predictive insights
has given companies leveraging its technology a competitive edge. Firms in cloud
computing, cybersecurity, and AI development have seen a surge in investor interest,
as DeepSeek’s tools help optimize operations, identify market trends, and uncover
growth opportunities. However, the platform’s disruptive potential has also raised
concerns.

Traditional tech companies that fail to adapt to the new era of AI-driven analytics
risk being left behind, which could negatively impact their stock performance. Furthermore,
regulatory scrutiny surrounding AI technologies may create additional volatility
in the market. As DeepSeek continues to evolve, its long-term impact on tech stocks
remains uncertain. What is clear, however, is that the companies embracing its capabilities
are positioning themselves to thrive in an increasingly data-driven world.

**DeepSeek’s Performance and Recognition**

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 * DeepSeek’s latest model, DeepSeek V3, has achieved leading performance in various
   benchmarks, including MMLU, MMLU-Redux, and MATH-500, with scores surpassing 
   many of its competitors.
 * The company’s models have been praised for their efficiency and effectiveness,
   with some users comparing them favorably to OpenAI’s models.

**DeepSeek’s Background and Development**

 * Founded in 2023, DeepSeek is a Chinese artificial intelligence lab that develops
   open-source large language models.
 * The company is funded in large part by Chinese hedge fund High-Flyer, founded
   and run by Liang Wenfeng, who has a background in AI trading algorithms.

**Community and Developer Feedback**

 * Reddit discussions highlight the excitement and skepticism surrounding DeepSeek’s
   capabilities, with some users reporting better performance and cost-effectiveness
   compared to alternatives like OpenAI’s models.
 * Developers have noted the detailed step-by-step thinking process in DeepSeek’s
   models, which is seen as a significant advantage in certain contexts.