Deep dive on DeepSeek: Business Insider debriefs Daybreak
Jan 28, 2025
Business Insider on DeepSeekDaybreak gets rundown of A-I shockwave from Business Insider reporter
INDIANAPOLIS (WISH) — No matter whether DeepSeek pays off on its promise or fizzles out and fades away, it has already accomplished a feat few other single entities have managed: shaking Wall Street, Silicon Valley, and government leaders all at once.
“I’ll admit it is exhausting,” said Emma Cosgrove, a Senior Reporter at Business Insider during a conversation with WISH-TV’s Daybreak.
DeepSeek is a China-based Artificial Intelligence startup. In a matter of hours this week, the firm’s large language model morphed from being a small contender in a crowded field to the dominant topic in the tech world. DeepSeek says it can deliver high performance at a much lower price than large American AI companies.
The price-to-performance revelations have sharply affected the outlook of several major Wall Street names, notably chip-maker NVIDIA, which saw a 17% stock selloff Monday.
Cosgrove points out that while the story is making headlines now, DeepSeek’s momentum has been quietly building for several months.
“The way we sort of compare models is we ask them the same questions and then we grade their answers. Those are called benchmarks. DeepSeek’s benchmark scores started getting really good at the end of last year. And over the last week, the awareness of that really started to rise. And the reason that it feels like an explosion of DeepSeek news is because yesterday, the market caught wind.”
DeepSeek’s home country adds to the complexity of the story, especially since the Trump administration pledged major support for American players in the AI world.
“It’s centered around a facility in Texas, a data center that’s going to be going in in Texas,” Cosgrove explained. “Construction’s already started, and the Trump administration has pledged to essentially make that easier. So get rid of some of the red tape, like get permits processed faster and allow the U.S. to ramp up its infrastructure faster.”
Cosgrove describes President Trump’s reaction to the DeepSeek news as “measured.”
“He said, ‘This is good. Competition is good. We should all be thinking about how to do this more efficiently. And efficiency is part of winning…’ So it was a calmer note from him at the end of yesterday,” Cosgrove said.
For all of Cosgrove’s analysis on the issue, including the security concerns that DeepSeek raises, watch her full interview with Daybreak above.
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