China's DeepSeek Is Freaking Out the AI World

A Chinese startup has developed a new AI model that challenges major players like ChatGPT by being more cost-effective and energy-efficient. This development has caused tech stocks to tumble, particularly affecting companies like NVIDIA. The model's reliance on less advanced chips questions the need for high energy and spending in AI. It also highlights US export restrictions on advanced semiconductors to China. The startup, launched in Hangzhou by Lian Wen Fung, self-censors sensitive topics and faces challenges with its cloud infrastructure due to its growing popularity.

What was the effect of the Chinese startup's app on tech stocks?

• It caused tech stocks to rise.

• It had no impact on tech stocks.

• It stabilized tech stocks.

• It led to a decline in tech stocks.

How does the Chinese startup's AI model differ from others like ChatGPT?

• It requires more energy.

• It uses more advanced chips.

• It is more expensive.

• It relies on less advanced chips.

What concern does the Chinese startup's AI model raise about companies like NVIDIA?

• It questions their high valuations.

• It supports their high valuations.

• It has no effect on their valuations.

• It increases their stock prices.

What was the original purpose of US export restrictions on advanced semiconductors to China?

• To reduce semiconductor production.

• To increase semiconductor prices.

• To support Chinese startups.

• To prevent technological breakthroughs.

What challenge does the Chinese startup face due to its growing popularity?

• Lack of funding.

• Government support.

• Infrastructure strain.

• Decreasing user base.