By james art 
The White House said on Tuesday that it was investigating the effects of national security of Deepseek’s rapid rise.
The Chinese startup AI has launched an open source problem, R1 that awakened the Silicon Valley. According to the company, the model uses far less computing power and far less chips -therefore far less money -to achieve the same or better results as its colleagues in the United States. The Deepseek app, AI assistant, headed for the top of app stores in the US and UK, although it underwent a cyberattack on Monday, which led the company to limit registrations.
The technical sector saw that his stock prices were reduced by a huge 1TN in response on Monday. Nvidia, the largest beneficiary of AI Boom, saw the sliding price of its shares with double-digit percentage points, which deleted hundreds of billions in the market cap, although the next day made a small recovery.
Asking the online version of the XI Jinping Assistant and other Chinese political topics returns inconsistencies that are obviously censored, although it is possible to download a topically hosted version. Application Privacy Policy states that it collects information about the entry of users into the chatbot, personal information that the user can add to their Deepseek account, such as email address, IP address and operating system of the user and their keys – all data – all data experts say can easily be shared with the Chinese government.
As the ban on Tiktok hangs in the air unresolved, Washington is facing another extremely popular Chinese application, which is worried about propaganda and collection of sensitive data. Donald Trump has taken possession that he is difficult for China, but swore to save the Tictoc after finding success there during his presidential campaign. The Congress Act, which either forces the sale of the video in short forms or prohibits the potential manipulation of the content of the Chinese Communist Party application and its collection of sensitive personal data for Americans as the main reasons to ban it on US digital soil. These problems seem to be equally severe with Deepseek, which is based on Hangzhou and hosts users’ data on servers in China.
So far, Trump and Downing Street have only offered guarded technology assessments. The US President said early on Tuesday: “Release of Deepseek, AI from a Chinese company, must be awakened for our industries, which we need to be focused on the laser in order to compete for victory.”
The Prime Minister’s spokesman said Deepseek’s progress shows that the United Kingdom must “continue more quickly to remove barriers over innovation” in AI.
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Sam Altman, CEO of Openai, suggested an assessment that does not reflect the huge reaction of the stock market. He said the R1 was “an impressive model, especially about what they are able to deliver to the price.”
Deepseek’s AI is an open code that allowed engineers outside China to audit the claims of its mother’s company. Risk capitalist Mark Andresen, who advises Trump’s White House, called the R1 “Sputnik moment of AI”, a bona fide breakthrough. The Global AI community was widely considered by the US leader in AI, but R1 questioned this domination.
Deepseek training, with tens of thousands of NVIDIA chips, can also undermine the efficiency of commercial embargo targeting AI of the United States on China. The sale of the company’s products in China is strictly regulated, but Depepeek managed to provide about 50,000 GPU graphics (GPU) anyway, VentureBeat. This is far from approximately 500,000, which is reported that OpenAi is using. Another complicating factor: commercial restrictions come into force for long periods of time, so they may not impede the work of Deepseek.
Since Depepeek says he has been able to create such a promising product with some of the resources used by other AI companies, the demand for chips may not be as heavenly as investors were once considered. Utilities companies are bound to the AI boom because the power requirements of data centers are growing. If a company can achieve the same result with less chips and therefore fewer data centers, demand for electricity may not increase so much that nuclear power plants need to be restarted.