DeepSeek AI Shakes Wall Street
On January 28, 2025, US President Donald Trump called the rise of Chinese company DeepSeek 'a wake-up call' for the US tech industry. DeepSeek's R1 model, developed at a fraction of the cost of its rivals, triggered a shockwave on Wall Street, causing Nvidia to lose nearly $600bn in market value. DeepSeek became the most downloaded free app in the US just a week after its launch. Trump suggested this could be positive for the US, but Australian Science Minister Ed Husic expressed concerns over data privacy. Founded by Liang Wenfeng, DeepSeek's technology has received praise but also faces skepticism. As the US restricts chip exports to China, Chinese AI developers are finding alternative approaches, leading to mixed market reactions.