Chinese AI startup DeepSeek has dealt a direct blow to U.S. semiconductor giant Nvidia by developing high-performance AI models at low cost. DeepSeek created competitive AI models using Nvidia's lower-performance GPUs designed for export to China, causing Nvidia's stock price to plummet significantly. Domestic semiconductor companies SK Hynix and Samsung Electronics are expected to be affected in the short term. However, some analysts argue that DeepSeek's emergence could lower barriers to entry in the AI market and contribute to ecosystem expansion in the long term. Domestic companies must maintain technological advantages and respond to the changing market environment through differentiation strategies.
