Vivek Ramaswamy Calls China's Deepseek 'Sputnik Moment' For US Amid Market Crash
Date
1/27/2025 8:19:32 PM
(MENAFN- Live Mint) Vivek Ramaswamy, the Indian-American entrepreneur and former member of DOGE backed by Donald Trump, said that the slump in US markets following the launch of Chinese AI model DeepSeek was a 'Sputnik moment'.
On Monday, the US market crashed, especially the Big Tech Stocks such as Nvidia, which reported 17% fall, while the nasdaq composite declined 5%.
“Sputnik-like moments are a good thing; We don't need to freak out; we just need to wake up," Ramaswamy wrote on X.
In the 1950s, the launch of Sputnik by the Soviet Union showed the capability of rocket technology, such as deploying rocket technology, which the US had not seen before.
Prior to the launch of Sputnik, the United States was considered technologically inferior. However, this belief was changed when Sputnik was launched on October 1, 1957. The successful launch of both Sputnik 1 and Sputnik 2 raised concerns in the US.
Similar concerns were highlighted on Monday, sending shockwaves to Wall Street after the launch of the Chinese version of the ChatGPT model, challenging Silicon Valley.
Following its launch, DeepSeek became the top-rated free application on the Apple App Store in the US, overtaking ChatGPT. It is claimed that DeepSeek uses low-cost chips and less data.
The new model of DeepSeek, R1 was developed at a minimal cost compared to the leading AI companies, especially Nvidia's chips and software.
The world's richest man, Elon Musk, who has invested heavily in Nvidia chips for his xAI company, alleged that Deep Seek may have used banned H100 chips. The ScaleAI CEO also made a similar claim. In 2022, the US government banned the H100 chip, manufactured by Nvidia, from being sold to China due to concerns about advanced AI capabilities that could be used for military applications.
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