AI morning brief - 2025-01-28

28/01/2025 3 min
AI morning brief - 2025-01-28

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Episode Synopsis

Episode Summary: In this episode of the Vertica Newshound Podcast, we explore a dramatic shift in the AI landscape ignited by the Chinese startup DeepSeek and its revolutionary R1 AI model. This breakthrough not only caused Nvidia's market value to plummet by $600 billion in a single day but also set the stage for a global reevaluation of AI development costs and competitive strategies. The ripple effects of this event are felt across the tech world as established companies and investors reassess their positions in this rapidly evolving field.Key Stories: 1. **DeepSeek's R1 AI Model Causes Historic Market Impact** DeepSeek's affordable and advanced R1 AI model challenged established giants, leading to an unprecedented $600 billion drop in Nvidia's stock. It sparked a $1 trillion loss in the Nasdaq, prompting a shift in venture capital investments and reevaluation of U.S. export controls. Sources: - Bloomberg: [Japan’s Tech Stocks Extend Slide as DeepSeek Pressures AI Sector](https://www.bloomberg.com/news/articles/2025-01-28/japan-s-tech-stocks-extend-slide-as-deepseek-pressures-ai-sector) - Bloomberg: [VCs Who Bet $300 Billion on AI Say DeepSeek Will Fuel Industry](https://www.bloomberg.com/news/articles/2025-01-28/vcs-who-bet-300-billion-on-ai-say-deepseek-will-fuel-industry) - Bloomberg: [DeepSeek AI Platform Brings a $1 Trillion Market Reckoning on Cost](https://www.bloomberg.com/news/articles/2025-01-28/deepseek-ai-platform-brings-a-1-trillion-market-reckoning-on-cost) 2. **Sam Altman Praises DeepSeek's R1 Model and Announces More Developments from OpenAI** OpenAI CEO Sam Altman acknowledges the R1 model's capabilities and competitive cost, indicating a renewed focus on innovation within OpenAI to keep pace in the competitive AI landscape. Source: - Bloomberg: [Sam Altman Praises DeepSeek R1 and Promises More From OpenAI](https://www.bloomberg.com/news/articles/2025-01-28/sam-altman-praises-deepseek-r1-and-promises-more-from-openai)3. **DeepSeek Surpasses ChatGPT to Become Top App on Apple’s App Store** DeepSeek's AI models have overtaken ChatGPT as the leading app in Apple's App Store across 51 countries, underscoring a shift towards more accessible and efficient AI solutions. Sources: - The Verge: [DeepSeek AI China Nvidia OpenAI](https://www.theverge.com/2025/1/27/24353079/deepseek-ai-china-nvidia-openai) - Mashable: [DeepSeek ChatGPT Apple App Store](https://www.mashable.com/article/deepseek-chatgpt-apple-app-store)4. **DeepSeek Releases Janus-Pro AI Model, Outperforming OpenAI’s DALL-E 3** DeepSeek unveiled Janus-Pro, an AI model positioned as a more advanced alternative to OpenAI’s DALL-E 3, further challenging industry norms with its quality and affordability. Sources: - Mashable: [DeepSeek Janus-Pro 7B Release](https://mashable.com/article/deepseek-janus-pro-7b-release) - Mashable: [DeepSeek AI vs OpenAI ChatGPT](https://www.mashable.com/article/deepseek-ai-vs-openai-chatgpt)Additional Points of Interest: - Nvidia acknowledged DeepSeek's advancements as 'excellent' but downplayed competitive fears. - Reid Hoffman launched Manas AI, a startup focusing on cancer drug discovery, with $24.6 million in funding. - Former President Donald Trump announced intentions to impose tariffs on imported chips, referencing the impact of DeepSeek’s AI. - Concerns over data privacy arise as DeepSeek’s AI app reportedly transmits U.S. user data to China. - Projections indicate the AI market will reach $3,819.2 billion by 2034, with the U.S. leading advancements.