Beijing, February 26, 2025—DeepSeek, a Chinese AI startup, is rapidly launching its new model, R2, following the success of R1, which made waves in global markets. The R1 model, using less-powerful Nvidia chips, competed with U.S. tech giants and gained significant adoption in China, raising concerns about tighter U.S. restrictions on AI chip exports.
The success of DeepSeek’s affordable AI model led to a $589 billion loss for Nvidia, marking a 17% drop in its market value. DeepSeek’s rise has prompted concerns from U.S. officials about China’s growing AI influence. The company also faced a cybersecurity attack and controversy over its chatbot’s politically sensitive responses.
