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DeepSeek's Cyber Attack: A Wake-Up Call for U.S. Tech
Feb 25, 2025
DeepSeek, the rising star in AI, faces a severe cyber attack affecting user access. With dramatically lower development costs than competitors, this incident could shift the industry's landscape. We explore what this means for investors and the future of AI. #DeepSeek #CyberAttack #AIRevolution #TechNews #InvestmentConcerns #U.S.VSChina #ArtificialIntelligence #Innovation #Nasdaq #TechTrends
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0:00
the hottest upand cominging company in
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big Tech says it's been hit by a major
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Cyber attack china-based deep seek says
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the attack caused major outages and
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disabled new users from signing on it
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have been the number one download in the
0:12
Apple App Store prior to the
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announcement that Tech heavy NASDAQ
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stock market open sharply lower as
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investors worried about the company's
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impact on the AI Community the company's
0:22
AI model card called R1 works just like
0:25
chat GPT but apparently costs far less
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to develop compared to competitors
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Google meta or open AI for more on this
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Aaron Greg joins us now he's a business
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reporter for the Washington Post Aaron
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thanks for being here what specifically
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has investors worried about deep
0:39
seek so what really has investors
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worried here is just the dramatically
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lower cost that deep seek is claiming um
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companies like anthropic for example
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have said that it it costs more than a
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hundred million to develop their AI
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models deep seek is claiming about 5
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million uh that is a dramatic reduction
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in what it takes in terms of chips in
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terms of power uh just about everything
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you can imagine totally changes the
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equation if it were true um what this
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means for tech companies in the US right
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now is that all of these companies that
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are built into the AI
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infrastructure uh companies like Nidia
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uh data center companies we basically
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have been orienting themselves towards a
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huge you know hundreds of billions of
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dollars of spend uh to develop this us
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AI industry based on the costs that that
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we thought were going to be uh much much
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higher than this for a very long time
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they're now having to Grapple with the
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idea that it might be much cheaper there
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might be a much cheaper way to develop a
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large language model and uh this made in
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China deep seek is the one leading the
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charge so is this sort of a wakeup call
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to us
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competitors it definitely is again we
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need to learn more about this app
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anytime you see something pop up like
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this uh and suddenly become popular
2:00
there are a lot of questions that need
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to be asked but it's definitely a wakeup
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call Mark Andre for example longtime
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Silicon Valley Tech investor said it's
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one of the greatest Innovations he's
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ever seen uh basically because it's low
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cost and it seems to perform uh pretty
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well almost as well as as some of the
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the leading uh you know us-based and and
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European apps such as chaty BT so this
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really is a wake up a wakeup call for
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anyone who's in Silicon Valley or anyone
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associated with with the Western uh AI
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industry but right now the stakes might
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not be super high because we are not
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incredibly reliant on AI yet but as AI
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becomes more built in and as AI even
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maybe become sort of this miracle thing
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that some of these American CEOs are
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saying that it can cure some diseases I
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mean working pretty well is not going to
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to to be the bar right so does more need
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to be figured out about deep seek deep
2:51
seek and and how accurate this
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is it sure does we need to watch this to
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see how it develops but what a lot of
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tech figures are saying right now is
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that one of the biggest limitations for
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the industry's progress for its ability
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to develop uh new applications and and
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new New Frontiers for the industry is
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the cost uh that the the ability to uh
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have enough chips for example to develop
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what you need to make is one of the big
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things that is holding back the AI
3:20
industry right now that's why Nvidia uh
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has become one of the most valuable tech
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companies on the planet if that cost is
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being slashed to a tenth of we
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previously thought it was uh you could
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see that enabling uh all kinds of New
3:35
Frontiers uh for these companies Aon
3:38
Greg thank you so much
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