geopolitical influence

DeepSeek’s initial emergence last year significantly disrupted AI markets, causing temporary stock drops for major Western tech firms by challenging U.S. dominance. While DeepSeek has since released model updates, they haven’t matched the initial shockwave. Factors like incremental improvements, compute limitations due to geopolitical influences, and continued rapid advancements from Western AI labs have softened the market’s reaction. However, ongoing research from DeepSeek suggests potential for future disruptive moments in the AI race.