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On Monday, American tech stocks experienced a significant downturn following an announcement from DeepSeek, a Chinese artificial intelligence company. DeepSeek claims to have developed an AI model that not only rivals but occasionally surpasses those of leading American companies. Remarkably, DeepSeek achieved this feat using far fewer computer processors, resulting in substantially lower development costs.
Despite widespread skepticism regarding DeepSeek's claims, the impact on American tech firms was immediate and severe. Notably, chip maker Nvidia saw a staggering loss of nearly $600 billion in market valuation, an amount comparable to the GDP of Sweden.
Adding to the buzz, DeepSeek's app has been dominating app store charts. However, the company faced challenges on Monday when it had to temporarily halt new signups due to what it described as "malicious attacks."
ABC News Tech Reporter Mike Dobuski joins The Ryan Gorman Show with a comprehensive breakdown of DeepSeek and its implications for the tech industry.