At the end of January there is usually not much going on in China: on the occasion of the celebrations for the Chinese New Year, many companies close millions of trips to their families. But the year of the Snake of 2025 starts differently: the start-up deepseek used the party season for the unveiling of a new artificial intelligence, which was supposed to send shock waves to the entire IT industry. Krone+ explains why the China-Ki caught the undisputed leading US cold so far.
In China, the snake stands for change and wisdom attributes that also attribute American companies, such as the OpenAI, Google, Meta and Amazon, supported by Microsoft. Last year they pumped billions in the hunger for power because of the computer-intensive training of their AI algorithms. The expansion of the computer capacities could not go fast enough-the US pre-rust in the still young field. The Nvidia chip group, whose processors are well suited for AI training, and which was hardly suitable for production. Driven by a few large customers and the Euphoria stock exchange, the stock price only exploded to hurry after the Deepseek-Ki was unveiled. 600 billion US dollars were destroyed in one day. What makes investors so nervous? Krone+ explains the background.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
