Japan’s tech market was rocked on Monday as major chip stocks plunged, driven by the emergence of DeepSeek, an AI innovation from China that is now challenging the dominance of the United States (US) and Asian tech companies that rely on the US AI supply chain.
The emergence of the new AI shakes up ChatGPT’s position, which has long been the center of attention in the tech world.
DeepSeek developed an open-source AI model for less than $6 million that challenges traditional models that require billions of dollars in budgets.
Last week, their “r1” reasoning model outperformed OpenAI’s leading model in a third-party test, proving that AI innovation is no longer dependent on big money.
According to analysis by ORTUS Advisors, a major shift is underway with a shift from growth stocks to value stocks, as China’s rapid chip advances raise doubts about Japan’s ability to compete globally.
With DeepSeek now dominating Apple's download charts and sparking a wave of change in the AI game, one thing is clear: Asian tech companies are now in a very risky position if they fail to respond quickly and intelligently.
