The Coin AI market took a huge hit today after a surprise move from a Chinese startup, Deepseek, which is shaking up the industry with its incredible AI models.
This bold challenge for US tech giants has sent shockwaves through the market, with popular AI tokens such as Nearby Protocol (Near), Computer Online (ICP), Offer (Offer), and pilecoin (FIL) all losing big, Which contributes to the broader 7.66% loss of market cap, which fell below $44 billion.
But what makes Deepseek so different, and why should investors care?
Let’s find out how this emerging player can be a game changer in the world of AI.
Deepsec’s competitive edge is shaking up Silicon Valley
What sets Deepseek apart is its ability to deliver high-performance AI at a much lower cost. While US companies like Openai and Anthropic Enthers spent more than $100 million building AI models like GPT-4 and Claude, Deepseek achieved similar results for just $6 million. Despite using less advanced AI chips, their efficiency is turning heads, especially as their apps climb to the top of Apple’s store rankings.
Arthur Hayes, former CEO of Bitmex, suggested that the rise of Deepseek could make global investors rethink their reliance on US technology and bonds. This challenge to US dominance in AI and technology is starting to get attention, with the NASDAQ Futures 100 down 2%, and tech stocks like NVIDIA, Qualcomm and Broadcom falling.
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“Buy Dip” moment?
Despite the sharp market correction, some analysts see a “buy” opportunity. Daniele, a well-known market analyst, believes that DeepSec’s affordability can help expand the scope of AI applications around the world by lowering entry barriers for users. Instead of hurting the Coin AI market, he argues that Deepseek’s innovation could drive growth in the industry.
Deepseek is gaining ground in global AI standards
Deepseek’s rapid growth is reflected in its strong performance in global AI benchmarks such as AIME, MATH-500, and GPQA. While Openai’s chatgpt still leads in some areas, such as coding, Deepseek’s performance gap is closing, signaling a shift in the market.
In response to the rise in Deepseek, Meta has created an emergency team to address the threat posed by China’s cheaper and more efficient AI models. With prices 17 to 27 times lower than competitors, Deepseek is poised to take over the market — unless big companies act quickly.
The world of AI is becoming more competitive, and Deepseek is making sure that no one can ignore its influence.
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