As the TikTok ban hangs in the air, the US investigates the security implications of another mega-popular Chinese app. According to the company, the model uses far less computing power and far fewer chips β therefore far less money β to achieve the same or better results as its US counterparts.
Nvidia , the greatest beneficiary of the AI boom, saw its share price slide by double-digit percentage points, which erased hundreds of billions in market cap, though it made a small recovery the next day.
Questioning the online version of the assistant about Xi Jinping and other Chinese political topics return non-answers that are obviously censored, though it is possible to download a locally hosted version. As the TikTok ban hangs in the air unresolved, Washington is faced with another hugely popular Chinese app rife with concerns about propaganda and the collection of sensitive data.
Donald Trump has taken a posture of being tough on China but vowed to save TikTok after finding success there during his presidential campaign. Trump and Downing Street have so far offered only guarded assessments of the technology. Since DeepSeek says it was able to create such a promising product with a fraction of the resources other AI companies use, perhaps demand for chips will not be as sky-high as investors once believed.
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Utility companies are tied up in the AI boom as power demands for data centers grow. If a company can achieve the same result with fewer chips and therefore fewer data centers, demand for electricity may not rise so much that nuclear power plants need to be restarted.
