The rise of DeepSeek, a Chinese AI startup, has created waves across global stock markets. While US stock futures were down on fears about the possible impact of DeepSeek on major tech players such as Nvidia and Google, other Asian markets are booking gains riding on the euphoria of developments at DeepSeek.

Concerns Behind?

DeepSeek designs its AI model using less expensive, lower-powered chips, which is far more affordable and puts it in competition with US firms that depend on high-end, costly chips for their AI technologies like Nvidia.

Asian Markets React Differently

Hong Kong stocks surged, with the Hang Seng tech index gaining 2 percent on Tuesday. In contrast, Japan's markets were down, with Nikkei 225 futures sinking 0.6 percent.

DeepSeek's Disruptive AI Model

The AI model costs a meager $5.6 million, developed scribe open-source technology and lower-tier chips, which get around US export regulations. Hence, DeepSeek is able to deliver solid AI services without needing pricey hardware.

Disrupting the US Tech Giants

It brings to question the hitherto unshakeable belief that huge injections of capital are necessary to succeed in AI; as experts claim, the ascendancy of DeepSeek informs the notion that a merits-based understanding might be sought rather than the usual considerable investment in the AI sphere.

Global Market Impacts

The DeepSeek phenomenon has rippled through markets globally, with AI-related stocks in China rebounding sharply, while Japanese chipmakers faced serious declines. And as DeepSeek warred off against fierce competition renders, with this it began to pressure US tech into agitated responsive mode of alteration.

What Lies Ahead for the US Tech?

DeepSeek's climb spikes fears over inflated valuations in the AI sphere for US tech giants such as Apple.