Chinese State-Backed Accounts Boost DeepSeek AI Launch Amidst US Stock Market Turmoil: New Report Reveals

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Chinese state-linked accounts hyped DeepSeek AI launch ahead of US stock rout: report

DeepSeek’s AI Launch: A New Era in Global Tech Rivalry

Last week, Chinese state-linked social media accounts heightened the narrative around the launch of Chinese startup DeepSeek’s AI models. This occurred just days before a significant dip in U.S. tech stocks, as noted by online analysis firm Graphika.

Amplification of National Narratives

According to Graphika, accounts belonging to Chinese diplomats, embassies, and state media played crucial roles in promoting the launch. They emphasized media coverage that positioned DeepSeek as a challenger to U.S. dominance in the AI sector.

Platforms Used for Messaging

This messaging strategy was executed across multiple platforms, including Elon Musk’s X (formerly Twitter) and Meta Platforms’ Facebook and Instagram. Additionally, it found its way to Chinese services like Toutiao and Weibo, reinforcing the narrative on various fronts.

Strategic Mobilization

Jack Stubbs, Graphika’s Chief Intelligence Officer, commented on the findings, stating, “This activity illustrates how China can mobilize a range of actors to seed and amplify narratives that suggest Beijing is surpassing the U.S. in key areas of geopolitical competition, particularly in AI technology.”

The Role of AI in Information Operations

Stubbs further noted, “We’ve consistently observed that both overt and covert Chinese state-linked actors are among the first to leverage AI for scaling their operations in the information environment.”

Connection to Previous Influence Campaigns

Graphika also highlighted the existence of a video with pro-China and anti-Western content on a YouTube channel that exhibited similarities to a coordinated influence campaign called Shadow Play. This campaign, identified by the Australian Strategic Policy Institute in 2023, involved at least 30 YouTube channels.

Market Response to DeepSeek’s Launch

In the market, the launch of DeepSeek’s AI assistant coincided with a small surge in discussions comparing its advancements to OpenAI’s ChatGPT. This impact was particularly evident shortly after DeepSeek announced its models on January 20, and it significantly escalated over the following weekend.

DeepSeek Overtakes Competitors

By the following Monday, DeepSeek’s free AI assistant had surpassed ChatGPT in downloads from Apple’s app store. Meanwhile, global investors reacted by selling off U.S. tech stocks, which resulted in a staggering $593 billion loss in market value for chipmaker Nvidia—marking a record one-day decline for any company on Wall Street.

Nvidia’s Response

Nvidia has declined to comment on the Graphika report, leaving many industry observers to speculate about the implications of DeepSeek’s advancements.

Cost-Effectiveness of DeepSeek

DeepSeek’s research team claims that they have developed aspects of their AI model at significantly lower costs than their U.S. counterparts. This revelation has raised concerns that U.S. companies, which have invested billions in AI data centers, might soon face an intense price war initiated by Chinese firms.

Impact on Major Investors

Shares of Microsoft, a significant investor in OpenAI, plummeted earlier in the week. This decline followed their announcement of slower-than-expected cloud revenue growth while they continued to invest heavily in capital expenditures on behalf of OpenAI.

Commitment to AI Investment

Despite these market fluctuations, both Microsoft and Meta have expressed their commitment to sustaining substantial investments in AI for the foreseeable future.

Celebration in China

Within China, DeepSeek’s emergence is being hailed as evidence of the nation successfully countering Washington’s efforts to limit the growth of its tech sector through export restrictions.

Controversies Surrounding DeepSeek

In the U.S., DeepSeek is facing accusations of potentially improper access to technology developed by OpenAI and other leading firms, although these allegations have yet to be substantiated.

Government Scrutiny

The U.S. Commerce Department is reportedly investigating whether DeepSeek has been utilizing American chips that are prohibited for shipment to China, adding a layer of complexity to the situation.

Conclusion

This unfolding scenario highlights the ongoing global battle for dominance in advanced technologies, particularly AI. As narratives are crafted and similar developments materialize, the stakes are rising in this pivotal area of international competition between the U.S. and China.

Questions and Answers

  1. What is DeepSeek and what have they recently launched?
    DeepSeek is a Chinese startup that recently launched its AI models, which have drawn attention in the global tech market.
  2. How did the U.S. market react to the launch of DeepSeek’s AI models?
    The U.S. tech market saw a significant downturn, with global investors dumping stocks, leading to a massive loss in Nvidia’s market value.
  3. What role did Chinese state-linked accounts play in the launch?
    These accounts were instrumental in amplifying narratives that positioned DeepSeek as a contender against U.S. tech dominance, particularly in AI.
  4. What concerns have been raised regarding DeepSeek’s operations?
    Concerns have been raised regarding DeepSeek’s potential improper access to U.S. technology and whether it has been using prohibited American chips.
  5. What are Microsoft and Meta’s plans regarding AI investment?
    Both companies have committed to continuing significant investments in AI despite recent market fluctuations.

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