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DeepSeek’s ‘Sputnik moment’ exposes holes in U.S. curbs on chip export

  • Deepseek, an AI chatbot from a Chinese company, has been compared to a 'Sputnik moment' by investor Marc Andreesen due to its cost-effectiveness compared to OpenAI's ChatGPT.
  • The market value of Nvidia dropped by over half a trillion dollars on January 27, marking the largest one-day loss in US stock market history.
  • US sanctions intended to limit China's AI capabilities have inadvertently spurred innovation, leading to the emergence of startups like Deepseek.
  • Deepseek's operational costs are significantly lower, charging around one-thirtieth of what OpenAI's ChatGPT costs, highlighting a shift in the AI landscape.
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Mobile World Live broke the news in on Tuesday, January 28, 2025.
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