“The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom.” – Isaac Asimov
As the whole fiasco over emerging tech and science is pacing each minute, we were reminded of these lines by great science fiction author Isaac Asimov. Several years ago, H.G. Wells and Asimov both predicted the rise of advanced machines and advanced technologies like AI in the future.
Why are we reminding you all of this? Well, because there is a new AI model on the block that has been causing a major state of chaos all over the world ever since it was launched. Within just 19 days of its launch, the app achieved approximately 3 million downloads and crashed the U.S. market. Flabbergasted? That’s the word which suits this situation the most. As quickly as this news surfaced, the rising concerns all over the world were inevitable.
Ever since the pandemic and TikTok, anything that emerges from China, has made global leaders suspicious. Why? Because whatever happens in Communist China remains under wraps and is never fully revealed in public. At least that’s what the critics claim. That’s why, this news is giving birth to all types of conspiracy theories. Every country is raising questions about China’s new model DeepSeek R1. As per the U.S., DeepSeek seems as shady as its name. Are they really stealing your data and selling it to China?
Let Corporate Soldiers bring this story to you!
What is So Special About DeepSeek R1?
As we know DeepSeek R1 is the creation of the Chinese AI startup DeepSeek. It was founded in July 2023 by Liang Wenfeng and has caused quite a commotion in the tech sector and greatly impacted the US stock market. As per the reports, it simplifies your research tasks and still gives detailed and accurate data. It could be beneficial for complex research such as medicine and various other complex disciplines. But the main reason that this model became viral, is its pricing and cost efficiency in comparison to other giants like OpenAI and Google’s AI.
Machine learning or let’s say Artificial Intelligence is so diversified that sometimes it amazes its creators, the humans. This time too, people are impressed with artificial brains made of algorithms. DeepSeek R1’s advanced reasoning skills on complex assignments showcased its proficiency. This model’s coding, problem-solving, and decision-making skills excel in comparison to other AI models.
Not only it scored well on the table by its sheer brilliance, but also signified its competency. With a 79.8% on AIME 2024, and a 96.3 percentile in Codeforces, it shows mathematical abilities and strong coding abilities. Additionally, it scored 90.8% on MMLU. Thus, DeepSeek R1 can tackle complex, interdisciplinary challenges in both academic and industrial settings.
| Performance | DeepSeek R1 | OpenAI o1 |
| AIME 2024 | 79.8% Pass@1 | 79.2% Pass@1 |
| MATH-500 | 97.3% | 96.4% |
| MMLU (G.K.) | 90.8% | 90.8% |
| Codeforces | 1450 | 1428 |
| All creative writing tasks | Phenomenal in comparison to OpenAI o1 | Lesser Efficiency |
Why is It Causing Chaos in U.S. Tech Market?
Imagine opening your eyes to the news that nearly $1 Trillion vanished away from the global stock market. Your country’s leading tech giants are bearing the sudden losses and an Asian app is the cause. That was the exact scenario of what happened recently. As soon as DeepSeek’s R1 AI model was launched, it triggered a historic selloff in US tech stocks on January 27/2025. And of course, as expected, the ripple effect was felt all over the sectors like semiconductor, cloud computing, and energy.
In a most surprising manner, the app achieved approximately 3 million downloads within just 19 days of its launch. It became the most downloaded free app on Apple’s App Store in several countries including the U.S., India, and Australia.
The Biggest Tumble: Nvidia Suffered $589 Billion Loss
Nvidia, used to be the sole dominator in the market because of its chip, but it suffered the biggest blow. Nvidia suffered a brutal $589 billion hit, a 16.9% plunge that sent investors scrambling and worrying. It is also the worst single-day decline in U.S. history. The Nasdaq and S&P 500, along with major chipmakers like Broadcom, AMD, and TSMC, all tumbled and panic was of course inevitable. Though Nvidia stated that if DeepSeek R1 is becoming successful, a share of the credit goes to Nvidia since it relies on Nvidia GPUs and high-performance networking.
Not only DeepSeek R1 became an instant threat to these major players in the market but also is making current high-end GPU investments precarious and worthless. This is the main reason for much chaos.
| Sector | Impact |
| Stock Market | Nasdaq tumbled down up to 3.6% |
| S&P 500 dropped 2% | |
| $1 trillion vanished from global market | |
| Tech Companies | Nvidia suffered the most. $589-600 billion in market value and significant drop up to 16.9-17% |
| Broadcom down to 17% | |
| AMD down to 13% | |
| Microsoft down to 2.5% | |
| Alphabet (Google) down to 2.46% | |
| TSMC down to 9-13% | |
| Semiconductor Sector | Reduced demand for high quality GPUs |
| ASML down to 6-7% | |
| Micron Technology down to 6-11% | |
| Energy Sector | Constellation and Vistra both down to 20-30% |
Amid this biggest tumble, geopolitical tensions are rising between U.S., and China. Not only it intensifies the race to achieve a supermodel when it comes to AI but also other major tensions like misuse of distillation and similar allegations to ethical concerns.
DeepSeek R1 As A Most Cost Efficient AI Model:
This is the biggest reason for the uproar about DeepSeek R1. It is said to be the most cost-effective model as it was created for less than $6 million. This is such a huge difference, a difference of worth hundreds of millions in comparison to its competitors like ChatGPT.
Look at DeepSeek R1’s financial and performing data. Here, the thin white line reflects how cost-effective this model is. With a developmental cost of $5.6 million, DeepSeek R1 is way ahead of its contemporary giants. But the loss it caused was huge where Nvidia lost $589 million and global capital loss mounting up to $1 trillion.
Rising Concerns: US Navy’s Ban on DeepSeek AI
Popularity emerges, and the problem begins, followed by concerns. Thus, driven by significant security and ethical worries, the U.S. Navy has raised the flags. They prohibited its personnel from using DeepSeek’s R1. In an email, they urged all naval officers to members to avoid using the DeepSeek model ‘in any capacity,’. Why? Because the ban is a part of a larger AI policy set out by the Department of the Navy’s Chief Information Officer. The Navy is addressing such order means it is indeed a matter of great security and ethical concerns.
Recent Developments:
This already chaotic situation has just become more complex. ChatGPT’s creator OpenAI, has made a few allegations against this new viral Chinese AI startup DeepSeek. The San Francisco-based company claims that their allegations have valid evidence that DeepSeek utilized OpenAI’s proprietary models to train its own competing AI system. This is extremely worrisome.
The AI giant OpenAI believes that it has discovered the signs of ‘distillation’ by DeepSeek. In such a technique developers use outputs from larger AI models to enhance the performance of smaller AI models. It’s the most common practice in AI development. But why is this flagged then? The reason is that DeepSeek is accused of violating the terms of service of OpenAI. As per OpenAI, it is prohibited to use outputs to develop competing models.
The cause of this suspicion emerged soon after Microsoft’s security researchers detected unusual activity last fall. And what did they observe? They observed individuals who were believed to be associated with DeepSeek, extracting a significant amount of data through OpenAI’s application programming interface (API). This is something serious, isn’t it? This discovery prompted OpenAI to take action by blocking suspected DeepSeek accounts that were accessing their API.
Psychological Impact & Emerging Conspiracies:
It is impossible that we aren’t aware of where the future is leading. This triggers a kind of paranoia among us all. Some people trust in AI systems and feel confident that these technologies will make fair and accurate decisions. But the other aspect triggers fear in some people. From data privacy to close surveillance, all the fears are rising alongside DeepSeek R1’s astonishing success. And where that’s when the fire emerges. The conspiracy theories have surfaced suggesting that DeepSeek might be collecting your user data for the Chinese government. Does this ring a bell? We all heard similar concerns raised about TikTok which led to a ban on TikTok in various countries.
As skepticism has developed towards the app, anxiety and concerns are emerging as well. Moreover, the advancement of such technologies is being seen as a cause of the job losses for humans. And now people are questioning whether these AI apps will increase cognitive load and decision fatigue for humans or if every data they provide to these apps is safe.
Let’s Recall Nostradamus’s Warning About The Global Economic Crisis!
Though Nostradamus did not exactly give any specifications, this 16th-century astrologer and seer, often has left us in amazement with his predictions about the future. As we step into 2025, various interpretations of his writings have surfaced, and suggesting that this year will be full of challenges including war and other turmoils. Nostradamus predictions for 2025, particularly focusing on technology, conflicts, and global dynamics warn of a global economic fall.
What did ‘Living Nostradamus’ Predict?
The Living Nostradamus or Brazilian parapsychologist, Athos Salome, predicted that by 2025, artificial intelligence (AI) will reach a critical point of ‘no return.’ What does it signify? It signifies the advancements we are approaching in AI. He implied that AI systems may begin making irreversible decisions in crucial areas such as transportation and cyber security. Now this raises alarm about ethical concerns and the autonomy of these technologies. This also raises security and privacy concerns for us. Are we all ignoring it for the sake of development or taking it as a mere prediction? Let the time decide.
Did The Simpsons Predict it Too?
This major sitcom always never fails to amaze us when it comes to predictions. We got an endless list of how many things that ‘The Simpsons’ has predicted so far. Even look at the recent prediction of a bullet incident at President Trump. From Donald Trump’s presidency to the design of smart watches, the writers of this sitcom have a transcendental thought process or foresight. Not only their writings were a mix of satire, and cultural awareness, but somehow many coincidences seem so apt that they almost feel like actual prophecies. However, let Corporate Soldiers negate all the rumours going on social media. The popular sitcom never predicted this in any direct way.
Luo Foli, The AI Prodigy Behind DeepSeek R1:
Amidst the AI fight between the East and the West, a genius’s name is emerging over and over again, the coder named Luo Fuli. This ‘AI Prodigy’ from China is said to have contributed greatly to the success of the DeepSeek R1 model. Luo Foli studied at the Institute of Computational Linguistics of Peking University. In her career at Alibaba and Xiomi, she excelled everywhere. Along with her team of 150 Chinese innovative thinkers, engineers and researchers, she contributed to the development of DeepSeek R1.
The year has just begun and the AI war between the U.S. and China is already advancing to a new level. This AI war will have its own set of repercussions and ripples. We will be vigilant like a hawk in gathering all the information about these developing situations. Corporate Soldiers bids adieu for now, but we will keep you posted! Connect with us to know more!
