China’s DeepSeek Stuns the AI World—But Elon Musk Remains Skeptical
DeepSeek has turned the AI industry on its head. The Chinese startup recently surpassed OpenAI’s ChatGPT as the most-downloaded free app on Apple’s App Store, sending ripples through the tech world. In response, Nvidia (NASDAQ:NVDA) shares plummeted 16%, while ASML (NASDAQ:ASML) fell 7% during morning trading, causing tech investors to scramble.
At the center of the buzz is DeepSeek's R1 model—an open-source reasoning engine that has captured attention not just for its cutting-edge performance but also for its cost-efficient design. The company claims to have trained the model using only 2,000 Nvidia chips, a fraction of the 16,000 or more used by competitors.
Not everyone is convinced, though. Elon Musk threw shade at the claim after Salesforce (NYSE:CRM) CEO Marc Benioff praised DeepSeek’s success as proof that AI is no longer tied to GPU dependency. Musk’s succinct rebuttal? "Lmao no."

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