The U.S. technology sector fell 5.6 percent on Monday, with the total market value of advanced chipmaker Nvidia, which has been on the rise for several years, dropping nearly $6 trillion in one day.
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As the new president of the United States, Donald Trump is announcing projects like "Stargate" to make significant investments in the technology market after taking office, a Chinese app has caused waves in the stock market and economy there. The 'Generative Artificial Intelligence' (Gen-AI) app 'Depsic', which was released on January 20, the same day Trump was sworn in, has now appeared like a storm.
OpenAI's ChatGPT, which has always been the center of discussion and curiosity since the last two years of
, has been overshadowed by Dipsic's latest stormy flight. Comparing chatgpt and dipsik, there are a lot of posts on social media about who gives the best results.
Another major company in the technology sector, Nvidia, lost 17 percent of its market value in a single day on Monday. This app, which is available in about 111 countries around the world, is being interpreted as an example that can be built and operated at a significantly lower cost than ChatGPT.
After Dipsic gave better results than OpenAI in some subjects including coding, experts called it a 'Sputnik moment in the field of AI' i.e. a serious milestone. US President Trump has also mentioned that the latest rise of Chinese AI companies is a warning for all American companies.
Trump's response is that American companies have to work harder to overcome it. This Chinese chatbot has attracted the attention of American users in one week without ending the controversy about the future of the next Chinese app Tiktok in America. What is
Dipsic?
is a generative AI platform based on a ``Large Language Model'' called LLM, similar to OpenAI's ChatGPT, Dipsic. Dipsic's large language model called 'R-One', based on about 6 trillion 70 billion parameters, is believed to be developed using less advanced computer chips than its existing competitors.
Due to the ongoing chip war between America and China, it is said that its 'LLM' was built by mixing the advanced chip called 'Nvidia A-100', which is banned in China, with other locally available chips. Although it is made in the style of 'Jugad', this technology is believed to be as powerful as OpenAI's LLM called 'O1'. It is being analyzed that this AI operating on the 'Deepsic-Vthree' model is not only the best of the open-source models, but also able to compete with the closed-source models.
OpenAI's GPT-4 equivalent capacity, Dipsic, claims to spend $2.19 per 1 million output tokens. For GPT-4, the cost is around 60 USD. It is said to be incredibly cost-effective. It is claimed that this app was built for about 6 million US dollars compared to American companies that are raising millions of dollars in the name of developing AI models.
is currently the most popular free app on Apple's App Store in the US. According to Newsweek, it is currently seen as a 'Top Free App' in two app stores in nearly 40 countries. About 80 percent of the downloads are believed to have occurred in the last few days. This app, which is in the top 10 in all the countries where it is available, is designed to not answer serious political questions related to China, like the various search models of Baidu and ByteDance.
Who made Deepsik?
A Chinese entrepreneur named Liang Wenfeng, who was previously unknown in the technology sector, founded Dipsic as a startup company in December 2023. According to the BBC, he was recently seen in a meeting called by Chinese Prime Minister Li Chiang and spoke in some rare interviews. In it, he commented that "if the Americans can make it, why can't China?"
Wenfeng, a 40-year-old entrepreneur, graduated from Zhejiang University with a master's degree in AI and electronic communication, according to various media. In 2016 and 2019, he raised billions of Chinese yuan in investment for the hedge fund company he founded.
'Now it seems that Chinese AI is about two years behind the US or other countries, we should not follow the technology made by others, we should lead by innovating it ourselves,' Wenfeng said in the English translation of his interview published in China Academy, 'Dipsik's aim is to develop advanced AI. Making technology accessible and affordable. For this, it is necessary to challenge the current market and increase innovative thinking.'
Dipsik's impact
American venture capital businessman Mark Anderson commented on the rise of Dipsik as 'AI's Sputnik moment' and posted on the social network 'X'. In 1957, the then Soviet Union launched a satellite called Sputnik into space for the first time in the world. During the race to be the first in space, America became jealous and surprised when its rival countries made leaps in technology. Now, the progress of Chinese technology in AI is also connected with Stupanic phenomenon.
Al Jazeera journalist Jan Power has mentioned that a small Chinese startup company in technology and AI could compete with the big players in Silicon Valley, challenging the US dominance in AI. Power notes that recent mass market valuations of companies like Nvidia and Meta may be far from reality or overvalued.
To what extent the discussion of Dipsic has brought a stir in the field of American technology and economy. The U.S. technology sector fell 5.6 percent on Monday. The total market value of the advanced chip manufacturer Nvidia, which has been continuously rising for a few years, fell by almost 6 billion dollars in one day.
The technology sector's index, the Nasdaq, fell more than 3 percent, while other Silicon Valley companies also tumbled. After Dipsik achieved such a great success by mixing Nvidia's expensive semiconductor chips with other locally available technologies, the market has seen a rush of people selling shares of AI companies including Nvidia.
The head of Microsoft, Satya Nadella, said that Dipsic's achievement was very effective and a significant milestone in the field of computers. He is of the opinion that Chinese progress should be taken seriously. Guiseppe Set of AI Market Research has also responded that Wenfeng's company has achieved greater results with very few resources than many companies operating today.
Dipsic's praise adds to the challenge for companies like OpenAI to prove the effectiveness of the billions they're spending and prove they're ahead of Chinese startups. According to the BBC, the Chinese government appears to be very pleased with the rise of Dipsic and sees it as an important step towards independently creating better AI technology than the West. Chinese state-controlled media have commented that their success has caused sleepless nights for the so-called big investors in Silicon Valley and Wall Street.
Meta's chief AI scientist, Yen Likun, also mentioned that Dipsic's success is the success of the open-source model and that it requires collaboration to develop AI. American President Trump admitted that Dipsic's AI model is faster and cheaper than its American competitors, and expressed his belief that it could be beneficial for America.
What happens now?
The discussion of the dipsic means that the US stock and technology markets will remain risky for some time, and the experts speculated that the market may be lower especially on Tuesday. But in the opening hours of the market opening on Tuesday, there was some improvement. Due to the dipsic storm, not only the American stock market, but also the major markets of Europe and Asia have seen a significant decline. On Monday, the price of the crypto currency Bitcoin also fell below 100,000 US dollars.
Even though Dipsic has been discussed, investors are watching it cautiously and are concerned about the long-term impact it could have on the AI market, which is estimated to be around $2.5 trillion, according to Reuters. They predict that the impact of dipsic storms will gradually diminish in markets other than those directly connected to AI.
Sam Altman, founder and head of OpenAI, considers Dipcic's achievement to be amazing. Another American tycoon, Elon Musk, has expressed doubts about the veracity of the financial and technical details about Dipsic. The success of Dipsik has given users yet another cheap and effective option. OpenAI has forced big AI companies like DeepMind to think about their strategy and effectiveness.
(with agency help)
