Have you heard about DeepSeek? It is causing a lot of issues and affecting the economy nowadays.DeepSeek is an AI program that was developed in China. When DeepSeek was first released, there was a big reaction to this program. The most remarkable thing about this program was that it used relatively little cost to develop it. The appearance of DeepSeek had a significant impact on the stock market. The Nasdaq index and other stock prices nosedived. 

The biggest issue was the nosedive of NVIDIA's stock price. The nosedive of NVIDIA was because most AI programs like DeepSeek used NVIDIA GPU, but DeepSeek reduced the reliance on NVIDIA GPU. DeepSeek achieved this by making strategic hardware choices, such as developing its own AI-specific chips, and implementing software optimizations to make its algorithms more efficient. It also embraced open-source initiatives, allowing it to collaborate with other developers and reduce its dependence on proprietary technology.  

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Therefore, DeepSeek has taken a toll on NVIDIA. This was a big event, so it was called a DeepSeek shock. However, there are several problems and suspicions about DeepSeek. The biggest problem of the program is that it leaked the personal information of the users. Some organizations argued about this. A New York-based cybersecurity firm, Wiz, revealed that DeepSeek’s database was left exposed to the internet without protection. Additionally, South Korea’s Personal Information Protection Commission (PIPC) has expressed concerns over DeepSeek’s data collection and processing policies. 

Therefore, governments in various countries are regulating the use of DeepSeek. For example, the U.S. government is considering banning DeepSeek from government devices, citing national security concerns. Also, in South Korea, the Personal Information Protection Commission has suspended new downloads of DeepSeek, citing insufficient personal information policies.   

After the regulation of DeepSeek, the stock prices of AI-related companies such as GRT have nosedived. It is sure that DeepSeek and AI businesses are the hot button these days. They also influence the economy and stock prices a lot. This situation will continue since the development of AI will not stop.

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