After Open AI's ChatGPT, and Google's Gemini, China's DeepSeek has started to take over the world by storm. Chinese AI DeepSeek has shaken the foundation of Silicon Valley as it has emerged as a new force. Not only this, DeepSeek has created a ruckus in many markets around the world including America. There has been a big decline in the wealth of many rich people of the world. The question arises what is this DeepSeek and who created it?
What is DeepSeek?
DeepSeek is a Chinese AI startup. This startup is known for its unique innovation. Its founder is Liang Wenfeng. This startup recently released its AI chatbot DeepSeek-R1. It became popular in the market within a short time of its release. It became the highest-rated free app on Apple's App Store in the US, surpassing OpenAI's ChatGPT.
Many people have given positive reviews to this AI assistant model. According to a newswire, DeepSeek-R1-powered AI chatbot was trained using Nvidia's H800 chips. In such a situation, its cost was less than 6 million dollars (about Rs 52 crore). On the other hand, about 10 times more money has been spent to make ChatGPT.
Who is DeepSeek founder Liang Wenfeng?
As per the information available, Liang Wenfeng is the founder and CEO of DeepSeek. Liang Wenfeng's father has been a teacher in a primary school in China. 40-year-old Liang was born in Zhanjiang, China. In the early days of school, he had a passion for learning new things. Along with this, he used to start finding solutions to the problems he saw.
Liang's early education was quite simple, but later he studied in many prestigious institutions. Here he strengthened his hold on Artificial Intelligence. After completing graduation, Liang founded many companies related to AI business. He founded Hangzhou Yakebi Investment Management in 2013 and Zhejiang Jiuzhang Asset Management Company in 2015. He also launched High-Flyer AI in 2019, a venture that manages assets worth over 10 billion yuan. He then founded DeepSeek in 2023. It is focused on developing AGI.
How did DeepSeek wipe out American tech giants' wealth?
On Monday, when the US and world stock markets came to know that China had developed this AI module at a very low cost, the shares of American tech companies collapsed like a house of cards and with this, the net worth of many billionaires of the world also decreased.
The impact of this blow from China was quite deep. The wealth of the world's 500 billionaires has declined by a total of $108 billion (about 9.34 lakh crores rupees). Oracle Corp's co-founder Larry Ellison and Nvidia's co-founder Jensen Huang suffered the biggest loss.
This move of China has had the biggest impact on those billionaires whose future is linked to AI models. Monday was like an earthquake for Jensen Huang, the co-founder of Nvidia, a company that makes chips needed for AI. The reason for this is the extremely cheapness of China's AI modules, due to which his wealth decreased by $20.1 billion in one go. His wealth has remained at only $101 billion.
According to the Bloomberg Billionaire Index, the loss of this move of China was also seen on Michael Dell of Dell Inc., whose net worth decreased by $ 13 billion. At the same time, Binance Holdings co-founder Chanpeng Zhao lost $ 12.1 billion and Elon Musk lost $ 6.7 billion. Google's Larry Page and Sergei Brin's wealth has declined by $ 6.3 billion and $ 5.9 billion respectively.
In this way, China's DeepSeek AI caused a total loss of $ 108 billion in the wealth of the world's 500 billionaires. In this, the wealth of about $ 94 billion of the billionaires of the tech sector alone was wiped out. This is about 85 percent of the total decline in the Bloomberg Billionaire Index. America's Nasdaq Composite Index fell 3.1 percent and the S&P 500 Index fell 1.5 percent on Monday