News Jan 27, 2025 10:14 UTC Chinese AI startup DeepSeek has launched affordable AI models, challenging US dominance and causing a significant drop in AI coin prices.The market reacted with fear, leading to losses in AI coins, tech stocks, and Nasdaq futures. Despite the initial shock, some analysts believe DeepSeek’s innovation could ultimately drive wider AI adoption and market growth.The AI coin market took a hit earlier today after a surprising move from a Chinese startup, DeepSeek, which is shaking up the industry with its incredibly affordable AI models.This bold challenge to U.S. tech giants has sent shockwaves through the market, with popular AI tokens like Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), and Filecoin (FIL) all taking significant losses, contributing to a broader 7.66% market cap loss, which fell below $44 billion.But what makes DeepSeek so different, and why are investors so rattled?Let’s dive into how this emerging player could be a game-changer in the world of AI.What sets DeepSeek apart is its ability to deliver high-performance AI at a much lower cost. While U.S. companies like OpenAI and Anthropic invest over $100 million to build AI models like GPT-4 and Claude, DeepSeek has achieved similar results for just $6 million. Despite using less advanced AI chips, its efficiency is turning heads, particularly as its app climbs to the top of the Apple Store rankings.Arthur Hayes, former CEO of BitMEX, suggested that DeepSeek’s rise could make global investors rethink their reliance on U.S. tech and bonds. This challenge to U.S. dominance in AI and technology is starting to gain attention, with Nasdaq 100 futures dropping 2%, and tech stocks like Nvidia, Qualcomm, and Broadcom seeing declines.Despite the sharp market correction, some analysts see this as a “buy-the-dip” opportunity. Daniele, a well-known market analyst, believes DeepSeek’s affordability could help scale AI applications worldwide by lowering entry barriers for users. Instead of hurting the AI coin market, he argues DeepSeek’s innovation could drive growth in the industry.DeepSeek’s rapid growth is reflected in its strong performance in global AI benchmarks like 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 DeepSeek’s rise, Meta has set up 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 dominate the market—unless top companies act quickly.The world of AI has just become a lot more competitive, and DeepSeek is making sure no one can ignore its impact.Never Miss a Beat in the Crypto World!Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.`;
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