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Chinese app DeepSeek hammers US tech stocks with cheaper open-source AI model

1. DeepSeek's app reaches 1.6 million US downloads within weeks. 2. Open-source model competes with major AI players like OpenAI and Google. 3. Tech waves cause stock sell-offs in Nvidia and similar firms. 4. Meta's AI chief praises DeepSeek's rapid rise in AI capabilities.

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FAQ

Why Bearish?

Nvidia and AI-chip stocks may be pressured by rising competition. Past examples show AI progress can disrupt established firms.

How important is it?

Increasing competition in AI can shift market dynamics significantly; Tech investors should take note.

Why Short Term?

Immediate trading reactions are likely as markets adjust to new competition. Traders often respond quickly to emerging technologies.

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