Global financial markets have witnessed an unprecedented turmoil after the sudden rise to the Deepseek artificial intelligence application, which has exported application stores and the concerns of investor concerns, especially in the United States.
This anxiety came as a result of several factors, including the low cost of the development of the application, its rapid spread, and its direct impact on the shares of major technology companies, foremost of which is the American technology giant “Invidia”.
“Deep Sik” .. a financial and technological earthquake
According to a report published by the British Broadcasting Corporation “BBC”, “Deep Seck”, which was launched on January 20, showed a high competitive capacity compared to the world leading artificial intelligence models such as “Chat GBT”, where he managed to perform Advanced at a much lower cost.
As a result of this success, the shares of “Invidia” decreased by 17%, which led to its loss of about 600 billion US dollars of its market value in one day, which is the largest daily decrease in the history of US financial markets.
According to the Financial Times as well, this decline prompted the Philadelphia index of sediments to drop by 9.2%, while the Nasdaq index recorded a decrease of 3%, which increased concerns about the future of American artificial intelligence companies on Tuesday.
Stephen Yu, the chief analyst at the Blue Will Groth, believes that “these losses reflect the extent of the market’s influence on Chinese companies’ ability to innovate at lower costs, which prompt investors to reassess their spending on artificial intelligence.”
Why do American investors fear “Deep Cick”?
Deep Seck has emerged as one of the most controversial innovations in global markets, not only because of his advanced performance, but also because of his extensive economic repercussions.
The launch of this Chinese model revealed radical changes in the balance of power between Western technology companies and their Chinese counterparts, which made American investors feel increasingly concerned about the future of their investments in this sector.
This anxiety depends on several main factors, most notably the “Deep Seck” ability to achieve amazing results with low development costs, which threatens the sustainability of American models that depend on huge investments.
Besides, the rapid progress of China in this field may lead to the loss of American companies their technological superiority, which makes them vulnerable to huge economic losses.
- Low development cost
According to an analysis published by “Bloomberg”, “Deep Cick” was developed at a cost not exceeding 6 million US dollars – some analyzes coming from Asia that the real cost does not exceed half of this number – compared to estimates that indicate that the development of “GBT4 “Cost more than $ 100 million.
This large cost gap raised fundamental questions about the feasibility of the huge investments pumped by American companies in developing artificial intelligence.
“Reducing costs in this big way reshapes the artificial intelligence market, as it no longer depends only on the possession of advanced technology, but also on how to exploit limited resources efficiently to achieve similar results,” said economist Dan Houtcheson of the Tech Insights Foundation.
- The challenge of American hegemony in artificial intelligence
In a move that supports Chinese aspirations, Chinese President “Xi Jinping” announced that the development of artificial intelligence is a national priority, which enhances China’s chances of competition globally.
On the other hand, the United States is trying to impose strict restrictions on the export of advanced electronic slides to China, but Deep Cick has proven that China is able to overcome these restrictions.
According to the analysis of the “Control Point Research”, “American policies to reduce the export of slides did not significantly affect Chinese companies, but rather led them to adopt new strategies based on software efficiency instead of the huge computer power.”
A catastrophic retreat of “Invidia”
The US chips sector in the United States received a severe blow after reports revealed that “Deep Seck” did not depend on the latest slides of “Invidia”, but was able to develop new software algorithms based on less developed but more expensive chips.
As a result, “Invidia” recorded a decrease in its market value, as it lost its position as the largest American company for “Apple” and “Microsoft”.
“What is happening is currently not just a decline in the shares of a company, but rather is a reshaping of the industry. The entire artificial intelligence, as Chinese companies can become the main player in this field in the coming years. “
China has witnessed a missile rise in the field of electric cars during the last decade, as its local companies such as “BYD” and “New” have exceeded many international competitors by providing cars with advanced technologies and competitive prices, which made them the main dominant in the sector.
This success reflects China’s strategy in achieving global markets through innovation supported by low production costs.
Experts believe that the scenario itself may be repeated in the field of artificial intelligence, as “Deep Seck” can follow the example of Chinese car companies, which will lead to the redistribution of technological powers worldwide, and prompted American companies to adopt new strategies to confront this escalating nightmare.
The effect of “Deep Sick” on the various sectors
With rapid progress in artificial intelligence techniques, the impact of these developments is no longer limited to the technology sector alone, but rather extended to various economic and industrial sectors.
Deep Seck is one of the most prominent examples of this transformation, as many analyzes indicate that its spread and impact are not only limited to companies specialized in artificial intelligence, but are reflected on financial markets, financial services, manufacturing and global trade.
This growing impact imposes new challenges on companies in various sectors, as it needs to reassess their strategies to keep pace with the rapid transformations imposed by Chinese artificial intelligence.
As the Chinese role escalates in this field, fears of American hegemony are increasing in digital innovation, which may lead to radical changes in the global economic scene.
- Technology and innovation sector
The major American companies such as “Microsoft” and “Google” are accelerating towards developing more advanced artificial intelligence models to counter the Deep Sick threat. Analysts believe that these companies may have to reduce the prices of their smart products or improve their efficiency to maintain their market position.
- Financial sector
Reuters reports indicated that many financial institutions have started to reassess their investment strategies in the field of artificial intelligence. Investors are afraid of the possibility of an economic bubble in this sector, which may lead to huge losses such as the “dot com” crisis in the first millennium.
- Industry and smart manufacturing
A report published by “Wall Street Journal” indicates that “Deep Cick” may lead to the reinterpreted of the smart manufacturing sector, as car and factories in Asia began using Chinese artificial intelligence technologies to reduce costs and increase productive efficiency.
Are we witnessing the end of the artificial intelligence bubble?
Recent years have witnessed huge investments in the artificial intelligence sector, as international companies have bet on the enormous capabilities that this field could provide in various sectors.
However, the emergence of “Deep Seck” and its economic repercussions made many experts and investors rethink the extent of the sustainability of this growth and whether we were already in front of an economic bubble similar to what happened with the crisis of the Internet companies in the early Millennium.
A report published by the “Financial Times” newspaper confirms that “Deep Cick” may be the beginning of a new wave of low -cost smart innovations, and according to the expert “Marina Chang” from the University of Technology in Sydney, “What we are witnessing today is a restructuring of the artificial intelligence market, where it increases The pressure on American companies to demonstrate that their huge investments achieve real returns. “
Bubble indicators … exaggeration in value?
Some analysts indicate that the huge investments that flowed to the artificial intelligence sector in recent years may not be supported by sufficient financial returns, which may lead to a sudden collapse of the market.
According to a report issued by Bloomberg, the volume of funds directed to the emerging artificial intelligence companies increased by 150% during the past three years, while the actual profit rate for most of these companies did not exceed 10% of the initial expectations.
“We are witnessing an unprecedented state of exaggeration in estimating the value of startups in the field of artificial intelligence, which reminds us of what happened with the Internet bubble in the nineties, when huge investments were pumped into companies that did not have models Sustainable works.
How does “Deep Seck” affect the market correction?
With the emergence of “Deep Seck” a strong competitor at low development prices, pressure on American companies is increasing to justify their huge spending on artificial intelligence technologies. For example, Microsoft announced an investment of $ 10 billion in its partnership with “Obin AI”, while Deep Cick managed to build a competitor with a budget not exceeding $ 6 million.
According to Jacob Levinson, an investment expert at Goldman Sachs Bank, “If the current trend continues, we may witness a collective output of investment capital from some American artificial intelligence companies, where investors will go towards costly more efficient models such as” Deep Cick “.
One of the most dangerous repercussions of the collapse of the artificial intelligence bubble may be its impact on the labor market, as a report issued by McKinsey Consulting Company estimates that about 30% of the emerging technical jobs depend on investments in artificial intelligence. If a sharp correction occurs in the market, this may lead to the loss of thousands of jobs and the slowdown in this field.
Bubble or natural correction?
Some analysts believe that what we are witnessing is not an imminent collapse of the sector, but rather a natural correction of the prices, especially with the entry of new competitors such as “Deep Cick”, which forces Western companies to re -evaluate their business models.
“What we see now is a shift in the nature of the artificial intelligence market, as high -cost models are replaced by other more efficient models, not necessarily a complete collapse of the market,” says Marina Zhang of the University of Technology in Sydney.
What can happen in the coming years?
Future developments can take several tracks, ranging from the continued Western domination of artificial intelligence techniques or the transition of the center of innovation to China, which may redraw the map of global economic powers.
- China’s rise is a dominant technological force
If China continues to develop highly efficient artificial intelligence technologies at low costs, as with Deep Cick, we may witness a clear superiority of China in this field.
According to a report issued by the Global Artificial Intelligence Research Center, Chinese investment in artificial intelligence exceeded $ 50 billion in 2023, and is expected to reach $ 120 billion by 2027.
This rapid expansion, backed by strong government policies, may give Chinese companies an unprecedented competitive capacity at the international level.
- Market restructuring and changing investment models
Deep Seck’s great impact on the market is likely to reshape investment forms in the artificial intelligence sector.
It is expected that the investments of major companies such as Google Microsoft is towards more sustainable projects, while increasing the focus on low -cost artificial intelligence techniques.
“The artificial intelligence market is now going through a major transformation stage, as major companies will have to either reduce the costs of research and development or search for new partnerships to maintain their competitiveness,” says Jacob Levinson, Technology analyst at Goldman Sachs.
- The possibility of major mergers between technology companies
A report issued by the Financial Times indicates that many emerging artificial intelligence companies may find it difficult to continue due to sharp changes in the market.
It is possible that we will witness a wave of integration and acquisitions in the coming years, as major companies such as “OpenAI and Amazon” will seek to buy promising startups to enhance their capabilities in this field.
- Changes in labor markets and future jobs
Artificial intelligence is not just an advanced technique; It is an influential factor that may radically change the labor markets. According to McKinsey Consulting’s report, 30% of technical jobs may become fully automated by 2030, which will affect millions of workers in traditional sectors such as programming, financial analysis, and customer service.
On the other hand, new jobs are expected to be established in the fields of data analysis, artificial intelligence systems management and data security, which requires radical changes in vocational education and training systems.
What is certain is that the coming years will be decisive in determining the direction that the artificial intelligence sector will take. Whether this is through the continued American superiority, the rise of China as a leading power, or even an economic correction that leads to a reassessment of the value of the investments of this sector, artificial intelligence will remain at the heart of technological and economic transformations for future decades.
And with all these developments, the big question remains: Will Deep Seck reshape the global artificial intelligence map? Will Western companies be able to keep pace with this unexpected challenge?
The coming days will reveal the impact of this technological earthquake on the global economy and the future of artificial intelligence in the United States and China.
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The Chinese “Deep Sik” … a financial earthquake and a threat to the American artificial intelligence market