A recent development surrounding the Chinese AI startup, Deep Seek, has sent a positive signal to Germany and Europe, according to Bitkom, a digital association. Deep Seek’s advancements demonstrate the dynamic nature of the AI market, where neither winners nor losers are yet certain and the United States does not have a monopoly on AI, said Susanne Dehmel, a member of the Bitkom executive board, in an interview with the Funke-Mediengruppe.
Dehmel emphasized that Germany and Europe are not yet out of the race in the AI competition. “We just need to stop warming up and start running” she said, adding that without their own efforts, progress will not be made. This includes not only financial support and backing for European AI companies but also recognizing AI as an opportunity rather than a threat and creating a regulatory framework that fosters innovation, making AI development and application in the region attractive and competitive.
Deep Seek’s recent stock market impact, which led to a nearly 17% drop in Nvidia’s stock, wiping out $589 billion in market value, has never been seen before in a US company. The Chinese startup claims to have trained its new AI model at a cost of less than $6 million on a few stripped-down Nvidia chip systems.