What is the Chinese artificial intelligence company that disturbed financial markets?

The support programme of this company became the No application on Monday. 1 fired on Apple Company iPhone phones, driven by curiosity about this contestant ChatGPT programme.

Part of the concern for some U.S. technology sector observers is the idea that a new Chinese company can reach American companies at the top of innovation for artificial intelligence, at much less cost.

This, if true, questions the huge amounts of money that American technology companies say plan to spend on data centres and computer microchips needed to support further advances in artificial intelligence.

United States President Donald Trump said on Monday that the technology of the new Chinese company DeepSeek should act as incentives for American companies and said it was good that companies in China have come up with a cheaper and faster method of artificial intelligence.

“Presentation by DeepSeek, artificial intelligence from a Chinese company, should serve as a call to our industries, that we should be focused on competing to win”President Trump said in Florida.

But noises and misunderstandings about the technological advances of the Chinese company Deepseek also caused confusion.

“The molecules they built are fantastic, but they are not even some miracle”, said analyst Stacy Rasgon, who follows the semi-responsive industry and was one of several stock analysts describing the Wall Street Stock Exchange's response as excessive.

They are not using any innovation that is unknown or secret or something. These are the things that everyone's experimenting with” she said.

What is “Deepseek”?

The new Deepseek company was founded in 2023 in Hangzhou, China, and released its first model of artificial intelligence later that year. Its leader Liang Wenfeng previously cofounded one of China's largest investment funds, “High-Frot”, which focuses on trading run by artificial intelligence.

The DeepSek company began to draw more attention to the artificial intelligence industry last month when it released a new model of artificial intelligence, which boasted it was at the same level as American companies' similar models, such as the OpenAI Company's ChatGPT programme, and that it was more effective in using the company's expensive microchip to train the system with large amounts of data.

The Chinese company's application became more available when it appeared on app platforms of Apple and Google companies earlier this year.

But it was a research study that was published last week on the same day as President Donald Trump's inauguration that set off the following panic.

The study involved another model of artificial intelligence by the Deepseek company called R1, which showed advanced capacity “rationalisation” ) such as the ability to reconsider the approach to a mathematical problem ♫ and was evidently cheaper than a similar model sold by the OpenAI company, called o1.

A moment?

After the dramaticity about DeepSeek's technical skills is a debate within the United States on the best way to compete with China for artificial intelligence.

“Deeseek R1 is the Sputnik moment for artificial intelligence”, said entrepreneur Marc Andreessen in a post Sunday on the X social platform, referring to the 1957 satellite launch, which launched a space exploration race during the Cold War, between the Soviet Union and the United States.

Andreessen, who has advised President Trump on technology policy, has warned that establishing excessive regulations for the artificial intelligence industry by the US government will prevent American companies and enable China to move forward.

But attention to Deepseek also threatens to undermine a key American foreign policy strategy in recent years to limit the sale in China of semi-intelligence distributors produced by America.

Some US-Chinese relations experts do not think this is an accident, reports VOA.