“AI wars escalate—DeepSeek’s success sparks US concerns, Nvidia reels from losses.”, — write: www.fxempire.com
“Nvidia’s chips, which they bought tons of, and they found their ways around, drive their DeepSeek model. It’s got to end.”
Meanwhile, OpenAI, the maker of ChatGPT, reportedly raised concerns about competitors, including China’s AI developers, using its platform to accelerate AI advancements. AI and crypto Czar David Sacks commented:
“There’s substantial evidence that what DeepSeek did here is they distilled the knowledge out of OpenAI’s models.”
US rhetoric points to a potential AI war unfolding, adding to uncertainties over US tariffs on Chinese goods. Last week, President Trump eased fears of a US-China trade war, saying he would rather avoid tariffs after constructive talks with China’s Premier Xi Jinping.
However, tighter tech-related export restrictions could sour US-China relations. Beijing may retaliate by targeting US firms that manufacture goods in China.
Despite the risks, the US President may face increasing pressure to address China’s access to US AI-related products. Experts are reportedly warning against using China’s AI tools, such as DeepSeek, stating the Chinese state may exploit users’ data.
Notably, the US Navy reportedly banned DeepSeek on January 24, citing security and ethical concerns.
As the US administration considers rolling out tariffs on February 1, a response to DeepSeek and its use of US tech could impact the Chinese markets after the Lunar New Year holidays.
China’s Tech Stocks Outperform as AI War Heats Up While Nvidia faced a bruising sell-off, US-listed Alibaba Group Holdings (BABA) advanced by 0.72% on January 29, bucking the broader US tech sector pullback. Over the past week, Alibaba has risen 8.50%.
Hong Kong-listed Baidu (9888) surged 7.66% in the week, helping lift the Hong Kong’s Hang Seng Index by 0.79% for the week. Brian Tycangco has highlighted Baidu Inc. (9888.HK) as a key player in China’s AI and tech space.
Meanwhile, the CSI 300 closed the week down 0.41% as tariff uncertainties weighed on investor sentiment.
With Chinese markets closed for the Lunar New Year, Hong Kong’s stock exchange will reopen on Monday, February 3, while Mainland China’s markets will resume trading on Wednesday, February 5.