The reality is that stock market values are shaped by large companies operating in dynamic, cutting-edge fields. Any significant advancement in those fields will naturally impact shares.
For example, if a photonic-based CPU were released tomorrow, it would affect companies like AMD, Intel, and ARM—just the way markets work. History is full of similar disruptions, from pharmaceutical breakthroughs reshaping the drug industry to the rise of electric vehicles. Tesla’s emergence didn’t exactly boost traditional car manufacturers, but that was widely accepted because it was an American company.
Market disruption happens more often than people realize. The difference here is that AI has been heavily hyped, leading to inflated stock values. When a field like this is so dominant, any leap forward—especially from a competitor—will inevitably have an impact. If investors put too many eggs in one basket, volatility is to be expected.
Ultimately, China achieved something impressive despite adversity. Instead of blaming them for their progress or for sharing their advancements with the world, we should applaud it. Spinning this into a conspiracy misses the point. If anything, the real issue lies in the hype-driven nature of the AI market itself.
As they say—diversity solves many things, stock markets included, though I'm sure in the days/weeks/months ahead - I expect a campaign of Deepseek is just wanting to capture people's data with it for the Chinese government and others more sinister allegations, though I'm sure China could claim the same from GPT and the like just as equally. Still, we never hear about that.