OpenAI and Microsoft are probing whether DeepSeek used distillation to help train its rival reasoning model.
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00:00DeepSeek has caused a bloodbath for Wall Street, with tech titans losing billions in market value.
00:04But now Microsoft is reportedly investigating whether the startup used OpenAI's API to train its models.
00:10It all started when DeepSeek released its latest AI model that was allegedly developed on a $6 million budget,
00:15which is just a fraction of the billions OpenAI, Meta, and other tech giants have invested to train and develop their models.
00:22The Chinese startup's founder, Liang Wenfeng, originally started his career as a hedge fund manager,
00:26who launched the model as a hobby after buying thousands of NVIDIA graphic processors.
00:31The prospect of low-cost models led to a market sell-off that cost NVIDIA $600 billion in market cap,
00:36the biggest one-day loss in history.
00:38The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries.
00:46But some investors are still bullish on U.S. tech stocks.
00:48Wedbush's Dan Ives dismissed concerns over the sell-off while dubbing DeepSeek as the Timu of AI.
00:54Other investors believe the market will rebound and DeepSeek's success will spur more investment into AI.