Panic in Silicon Valley? China's DeepSeek challenges US supremacy over AI

On his first full day back in power, US President Donald Trump trumpeted a $500 billion plan to build giant data centres for artificial intelligence. The photo op put the rest of the world on notice: the billionaire tech bros of Silicon Valley reign supreme, with the full weight of the White House behind them. Fast forward to Monday and the record $590 billion drop in the market value of US chipmaker Nvidia. Spooking the markets is the announcement that a Chinese startup can operate its latest AI model 18 times cheaper than Sam Altman's GPT-4. Is DeepSeek for real? Why the sudden surprise? If it upends America's dominance of artificial intelligence, does that mean a democratisation of global information systems or a showdown between superpowers that ultimately decides who rules the world?

Panic in Silicon Valley? China's DeepSeek challenges US supremacy over AI
On his first full day back in power, US President Donald Trump trumpeted a $500 billion plan to build giant data centres for artificial intelligence. The photo op put the rest of the world on notice: the billionaire tech bros of Silicon Valley reign supreme, with the full weight of the White House behind them. Fast forward to Monday and the record $590 billion drop in the market value of US chipmaker Nvidia. Spooking the markets is the announcement that a Chinese startup can operate its latest AI model 18 times cheaper than Sam Altman's GPT-4. Is DeepSeek for real? Why the sudden surprise? If it upends America's dominance of artificial intelligence, does that mean a democratisation of global information systems or a showdown between superpowers that ultimately decides who rules the world?

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