DeepSeek rattles the US AI dominance. Can it continue to rattle?

 The emergence of DeepSeek AI, a powerful Chinese language model, has sent shockwaves through the US AI industry. Developed with a focus on cost-effectiveness, DeepSeek reportedly functions effectively on lower-end hardware, a stark contrast to US models heavily reliant on high-end chips like Nvidia's. This revelation triggered a significant sell-off in Nvidia stock, highlighting the potential disruption to the current AI landscape.   

https://site.financialmodelingprep.com/market-news/nasdaq-futures-plunge-amidst-concerns-over-deepseeks-impact-on-ai-chip-demand

Last night, I downloaded DeepSeek to take a peek and lo and behold, at first sight, looked as good as the Copilot, Gemini AI, and others I have come across.

Well, what does it lack?

 However, a notable limitation became apparent: DeepSeek lacks robust image generation capabilities. While it can provide code snippets (like Python with Kivy) to generate images, this approach is less user-friendly and may be hindered by the limitations of lower-end hardware in processing and rendering graphics. In contrast, US models excel in not only creating images but also seamlessly modifying them based on simple text prompts.   This is clearly beyond low-end chips.

This development necessitates a renewed focus on innovation and optimization within the US AI sector. US developers must prioritize improving model efficiency and exploring alternative hardware solutions to maintain a competitive edge. While DeepSeek presents a significant challenge, it also serves as a valuable catalyst for further advancements in AI technology.