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China’s AI Wiped $1 Trillion Off US Tech Stocks

DeepSeek AI #1 on App Store, But Privacy Concerns Surge

Author

Mark Savant
January 31, 2025

TRENDING

Gen Z vs. AI

A global study found 40% of managers prefer AI over Gen Z hires, citing lack of experience, poor teamwork, and costly training. Backed by a top business school, the research suggests education is failing graduates. Experts say better training, mentorship, and communication are the real solution.

What’s Ahead

  • China’s AI Wiped $1 Trillion Off US Tech Stocks

  • AI Simulates 500 Million Years of Evolution to Create New Protein

  • DeepSeek AI #1 on App Store, But Privacy Concerns Surge

AI DEVELOPMENT

China’s AI Wiped $1 Trillion Off US Tech Stocks

The launch of DeepSeek, a Chinese AI model, has sent shockwaves through the tech industry, wiping $1 trillion from US stocks. The new competitor threatens to upend the artificial intelligence race, challenging the dominance of American firms like OpenAI.

The Details

DeepSeek’s AI, powered by cheaper and less advanced Nvidia chips, outperforms US models, raising alarms in the AI sector. Despite US sanctions on cutting-edge Nvidia chips, DeepSeek managed to create a powerful model using less-capable H800 chips, demonstrating that significant breakthroughs can happen with fewer resources.

This achievement undermines the need for massive AI infrastructure investments by US companies, which have poured billions into building state-of-the-art AI systems. The lower cost of DeepSeek’s model raises serious questions about the high price tags attached to AI development in the US, causing analysts to reassess the AI boom and its potential returns.

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SCIENCE

Artist's depiction of esmGFP

AI Simulates 500 Million Years of Evolution to Create New Protein

An AI capable of simulating half a billion years of molecular evolution has just created a new protein in seconds. This could transform drug development and protein engineering, offering exciting possibilities for medicine.

The Details

The AI model, ESM3, was trained on billions of protein sequences and tasked with filling in missing genetic code. This led to the creation of a new protein called esmGFP, which glows like the proteins found in jellyfish.

The sequence of this protein is unique, requiring 96 genetic mutations to evolve, mutations that would take over 500 million years to occur naturally. The breakthrough opens doors to faster, more efficient drug design and could dramatically speed up advancements in biotechnology. Scientists believe this AI could solve protein engineering challenges that evolution couldn't.

👇 Watch: Donald Trump announced a $500 billion AI project called Stargate, combining OpenAI, Oracle, and Softbank. It’s expected to create 100,000 jobs. Let’s explore the implications of this massive AI venture and what it means for AI’s future.

SECURITY

DeepSeek becoming the most downloaded free app in the UK and the US

DeepSeek AI #1 on App Store, But Privacy Concerns Surge

DeepSeek’s climb to #1 on the App Store has shaken the tech world, but its ties to the Chinese government have raised serious concerns over privacy and censorship.

The Details

DeepSeek’s performance has shocked the industry with its low-cost AI rivaling established platforms like ChatGPT. However, the app’s privacy policy has sparked alarms, as it collects personal data stored on servers in China, where laws require companies to support government intelligence efforts.

Experts warn that any data inputted may be subject to scrutiny by the Chinese government, posing a risk for sensitive or personal information. Censorship on controversial topics, including the Tiananmen Square massacre, raises further concerns about DeepSeek spreading biased or manipulated narratives.

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Humans and AI

👇 Look: Can AI and Humans Thrive Together in Space?

Space exploration is evolving rapidly. AI is enhancing missions by making them cheaper and more efficient, but the real power comes when humans and AI work together. AI handles data and complex tasks, while humans bring intuition, creativity, and critical thinking.

The future of space exploration will rely on both, using AI to aid decision-making while humans guide missions and address unforeseen challenges. This collaboration promises to drive breakthroughs and ensure that space exploration continues to benefit both space and life on Earth.

AI Stock Watch

AI Stock That Might Be Worth More Than Meta in 2025

Broadcom is emerging as a key player in AI infrastructure, benefitting from increased spending in data centers and networking solutions. With its strong role in custom chips for AI companies, including Meta, Broadcom is positioned for growth. While Meta faces pressure from its $65 billion budget, Broadcom's role in AI infrastructure is expected to drive its value higher. If trends continue, Broadcom could overtake Meta by 2025.

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