Deepseek: Evolution or Revolution?
Is Deepseek’s really worthy of being called a shockwave? Short-term, yes. After that, not at all. It’s just another step in a predictable march.
Unless you have been hibernating, you will know the world gasped this week as Deepseek launched with a Press Release that surprised many, stripping billions off tech stock valuations overnight. Some analysts are calling it a paradigm shift. A great upheaval. The dawn of a new AI order.
Come on. Be serious. Those analysts are not right.
What we are witnessing is not a fundamental transformation of the AI landscape but rather the logical progression of an industry already barreling toward greater efficiency. Lower costs. Reduced power consumption. A shrinking environmental footprint. These were not distant aspirations; they were the inevitable next steps.
The only real disruption here? It came from China.
And that—more than any specific technological breakthrough—is what has spooked the market. It wasn't the computational efficiency. It wasn't the performance per watt. It wasn't a purported open source context. Not even the cost savings. It was the geopolitical shift.
The industry’s trajectory was already clear. Compute was getting cheaper. Models were becoming more refined. The marginal cost of intelligence was heading toward zero. Deepseek just arrived slightly ahead of schedule.
This is how markets work. If the breakthrough hadn’t come from China today, it would have come from Silicon Valley next quarter. Or an open-source initiative six months later. And yet, the moment a Chinese company does it first, Wall Street panics. Investors flee. Fear replaces reason.
But let’s not pretend this marks a great discontinuity in AI’s evolution. It is not. This was always coming. The onlynthing that really changed is where it came from.
And the market will stabilise. Firms like NVIDIA are feeling short-term knee-jerk, not long-term harm. They will adjust and prosper in all the areas in which they excel.
And if being from China is the real fear, then we ought to be clear-eyed about what truly matters: not just the technology itself, but the geopolitical reality shaping its future. Being from China brings social espionage baggage, rightly-earned, but Deepseek is not a revolution.
#DeepseekAI #China #AI #SiliconValley
