China’s AI Startup DeepSeek Sends Shockwaves Through Global Markets
China’s artificial intelligence (AI) startup DeepSeek has sent shockwaves through global markets, with its latest advancements causing significant disruptions. The ripple effects were felt most acutely by NVIDIA, whose share price plunged 16.97%—the steepest decline since March 2020, during the early days of the COVID-19 pandemic.The domestic semiconductor industry is also closely monitoring the impact of DeepSeek’s innovations.
According to reports from the Hong Kong South China Morning Post (SCMP) and CGTN, deepseek’s latest AI model, DeepSeek-V3, has been lauded for its comparable performance to Silicon Valley giants like OpenAI, but at a fraction of the advancement cost. The model was developed by a team of 150 researchers and engineers, including founder Yangwon Feng, and 31 data automation research teams.
What sets DeepSeek apart is its unique approach to talent. Unlike many Chinese AI startups that rely on researchers with international experience or foreign PhDs, DeepSeek’s team is predominantly homegrown. Most of its 139 R&D personnel graduated from prestigious Chinese universities or are currently pursuing master’s and doctoral programs domestically. The team is notably young, with most members in their 20s or early 30s, and team leaders under 35.
Key figures include Gaohwa and Zeng Wanding, who are credited with advancing the multi-head potential attribution (MLA) studies, which enhance the inference efficiency of DeepSeek’s AI models. Gaohwa holds a physics degree from Beijing University, while Zeng is pursuing a master’s at the Beijing Woojeon University AI Research Institute. Other notable team members include Guadaya, a recent PhD graduate from Zhongshan University, and Hao and Dadamai, both PhD holders from Beijing University.
The most talked-about talent is Luo Pru,dubbed the “AI Genius girl.” Luo,who majored in computer science at the Beijing College of Education and holds a master’s in computer linguistics from Beijing University,played a pivotal role in developing DeepSeek-V2. Recently, she made headlines after receiving a 10 million yuan (approximately 2 billion won) offer from Xiaomi founder Lei jun.
The SCMP highlighted that DeepSeek’s focus on domestic talent sets it apart from its peers, showcasing a different approach to innovation. Though, the startup’s rise has also intensified concerns about the U.S.-China tech rivalry. U.S. President Donald Trump has expressed worries that China’s push for semiconductor self-sufficiency could further strain relations.
The market reaction to DeepSeek’s advancements has been severe. Tom’s Fund Rat Global Advisor Research Officer described the sell-off of U.S. tech stocks as “the worst market excess response since the beginning of the pandemic.”
| Key Highlights |
|———————|
| NVIDIA’s share price plunged 16.97%, the steepest drop as March 2020. |
| DeepSeek’s DeepSeek-V3 model rivals silicon Valley giants at a lower cost. |
| The team comprises 139 R&D personnel,mostly young graduates from Chinese universities. |
| Key figures include Gaohwa, Zeng Wanding, and Luo Pru, the “AI Genius Girl.” |
| The U.S.-China tech rivalry is expected to deepen as China accelerates semiconductor self-sufficiency. |
As DeepSeek continues to disrupt the AI landscape, its impact on global markets and the tech industry will undoubtedly remain a focal point for investors and policymakers alike.
