DeepSeek AI shakes U.S.

[Anchor]

A deep learning AI model named DeepSeek, created by a Chinese startup, has taken the world by storm.

It has developed a high-functioning AI without using NVIDIA's expensive high-performance chips.

The New York stock market has been shaken.

First, reporter Kim Ji-sook in Washington.

[Report]

The stock price of NVIDIA, a leader in AI semiconductor chips, plummeted by 17%.

In just one day, its market capitalization evaporated by $589 billion, equivalent to 847 trillion won, and the New York stock market also wobbled.

NVIDIA's decline is due to the AI model released by the Chinese startup DeepSeek.

DeepSeek showcased a high-functioning AI model without the expensive high-performance chips that have been considered essential for AI.

[Fiona Cincotta/Senior Market Analyst, City Index: "This is the first time that it feels that there has really been sort of a disruption to the potential outlook for AI, or particularly those firms such as NVIDIA who really benefitted from the run-up so far."]

DeepSeek, facing U.S. regulations that blocked the export of high-performance chips to China, instead created a top-notch AI model using lower-performance, cheaper chips.

There are reactions in the U.S. AI industry expressing disbelief.

Some have raised suspicions that DeepSeek is hiding the use of the latest chips in its AI development.

On the other hand, President Trump viewed the competitive AI release from a Chinese company as a positive development, stating it serves as a wake-up call for the U.S.

[Donald Trump/U.S. President: "The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser focused on competing to win."]

The U.S. has been expanding export controls to hinder China's AI technology development.

However, there are analyses suggesting that U.S. supply restrictions have actually stimulated the development of low-cost AI models like DeepSeek in China.

This is Kim Ji-sook for KBS News in Washington.