• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Sectors

Chinese AI app DeepSeek sparks global tech selloff, challenges U.S. AI dominance 

Samson Akintaro by Samson Akintaro
January 27, 2025
in Sectors, Tech News
Chinese AI app DeepSeek sparks global tech selloff, challenges U.S. AI dominance 
Share on FacebookShare on TwitterShare on Linkedin

The meteoric rise of Chinese artificial intelligence (AI) app DeepSeek has rattled global tech markets, triggering a selloff in shares of major companies like Nvidia, Microsoft, and Meta.

The app recently surpassed rivals such as ChatGPT to become the top-rated free app on Apple’s App Store, shaking confidence in U.S. dominance in AI innovation.

DeepSeek’s rapid ascent has startled investors, with European share prices dropping and tech-related stocks, such as ASML and Siemens Energy, suffering sharp declines of over 10% and 21%, respectively.

RelatedStories

Google BOLD internship program opens applications for 2025 

Google unveils $37 million investment plan to boost AI Innovation across Africa 

July 24, 2025
UN to big tech: Power your AI with clean energy by 2030 or risk unsustainable future 

UN to big tech: Power your AI with clean energy by 2030 or risk unsustainable future 

July 22, 2025

Analysts believe the app’s low-cost development model has challenged existing assumptions about the financial barriers to creating cutting-edge AI systems.

“This idea of a low-cost Chinese version hasn’t been at the forefront, so it’s taken the market by surprise,” said Fiona Cincotta, senior market analyst at City Index, who spoke with BBC.

A low-cost AI revolution 

DeepSeek’s disruptive potential has also raised concerns about the future profitability of U.S. tech giants that have poured billions into AI infrastructure.

DeepSeek is powered by the open-source DeepSeek-V3 model, which its researchers claim was developed for under $6 million, a fraction of the costs incurred by its competitors.

  • While this claim has been met with skepticism in the AI community, the company’s approach has demonstrated that high-performance AI models can be developed with less computing power and lower costs.
  • DeepSeek-R1, a recently launched version of the app, has been touted as having performance on par with OpenAI’s advanced models in tasks like math, coding, and natural language processing.
  • Silicon Valley venture capitalist Marc Andreessen described DeepSeek’s rise as “AI’s Sputnik moment,” drawing parallels to the Soviet Union’s surprise launch of the first satellite in 1957.

Navigating U.S. export restrictions 

DeepSeek’s emergence comes amid heightened U.S. export controls on advanced chips and technology to China.

Despite these restrictions, DeepSeek has reportedly managed to thrive by utilizing Nvidia A100 chips, now banned for export to China, in combination with cheaper, lower-end chips still available for import.

  • Founder Liang Wenfeng, a 40-year-old graduate in information and electronic engineering, reportedly stockpiled approximately 50,000 Nvidia A100 chips to power the company’s AI ambitions.
  • In response to DeepSeek’s success, U.S. tech firms and foreign investors announced the Stargate Project, a $500 billion investment into AI infrastructure based in Texas.
  • While DeepSeek’s rise has sparked concerns about its impact on U.S. AI dominance, Wall Street analysts caution against overstating its implications.
  • According to Citi, U.S. firms still benefit from access to more advanced chips and resources, giving them a competitive edge in an increasingly restrictive environment.

The founder behind DeepSeek 

DeepSeek was founded in 2023 by Liang Wenfeng in Hangzhou, southeastern China.

Beyond his work in AI, Liang also runs a hedge fund that initially backed DeepSeek’s development.

Known for his pragmatic approach, Liang has expressed surprise at the global reaction to his AI model.

“We didn’t expect pricing to be such a sensitive issue,” Liang said in a 2024 interview. “We simply calculated costs and set prices accordingly.”

What you should know 

The rise of DeepSeek comes at a time when Microsoft is pushing the American AI leadership agenda to reduce China’s dominance in the global AI space.

In a January 3, blog post where he announced Microsoft’s plans to invest $80 billion in AI-enabled data centers this year, the company’s Vice Chairman and President, Brad Smith, said the growing competition between U.S. and Chinese AI technologies, particularly in developing nations.

  • According to him, the advent of generative AI has intensified competition, particularly with China’s rapidly advancing AI sector.
  • He compared this race to the evolution of the telecommunications industry over the last two decades.
  • Smith noted that Chinese companies, with substantial government subsidies, overtook Western counterparts in telecommunications, creating dependencies that posed challenges to U.S. national security.

He said China is now replicating this strategy in AI by subsidizing access to critical technologies like chips and promising to build local AI data centers in developing nations. The strategy aims to lock these nations into China’s AI ecosystem for the long term.


Follow us for Breaking News and Market Intelligence.
Tags: artificial intelligenceDeepSeek
Samson Akintaro

Samson Akintaro

Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

Related Posts

Google BOLD internship program opens applications for 2025 
Sectors

Google unveils $37 million investment plan to boost AI Innovation across Africa 

July 24, 2025
UN to big tech: Power your AI with clean energy by 2030 or risk unsustainable future 
Sectors

UN to big tech: Power your AI with clean energy by 2030 or risk unsustainable future 

July 22, 2025
Beyond Hype: Building an AI-Ready business in Africa 
Companies

Beyond Hype: Building an AI-Ready business in Africa 

July 16, 2025
AI holds key to exposing frequent budget padding, enhancing fiscal efficiency in Nigeria – Dr. Nasir Aminu 
Budget

AI holds key to exposing frequent budget padding, enhancing fiscal efficiency in Nigeria – Dr. Nasir Aminu 

July 14, 2025
Meta announces Llama impact grant for Sub-Saharan African Startups, researchers
Sectors

Meta seeks $29 billion in private capital to fund AI infrastructure  

June 28, 2025
AI now handles up to 50% of work at Salesforce—CEO Marc Benioff  
Sectors

AI now handles up to 50% of work at Salesforce—CEO Marc Benioff  

June 26, 2025
Next Post
Unilever

Full Year 2024 Unaudited Report: Unilever Nigeria records 44% growth in Turnover

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

first bank








DUNS

Recent News

  • Dr. Juliet Ehimuan, Minister Hannatu Musawa, African business leaders explore global innovation at DICE immersion in the U.S. 
  • CREDICORP launches new initiative to provide credit for Nigerian youths 
  • Malaysia weighs on Palm Oil, Nigeria reforms industry  

Follow us on social media:

Recent News

Dr. Juliet Ehimuan, Minister Hannatu Musawa, African business leaders explore global innovation at DICE immersion in the U.S. 

Dr. Juliet Ehimuan, Minister Hannatu Musawa, African business leaders explore global innovation at DICE immersion in the U.S. 

July 25, 2025
CREDICORP launches new initiative to provide credit for Nigerian youths 

CREDICORP launches new initiative to provide credit for Nigerian youths 

July 25, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

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

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics