Opinion by: Ahmad Shadid, CEO of O.xyz
The Deepseek saga clearly said that cheaper AI models can offer revolutionary advantages. Deepseek questions traditional investments with low -cost and high performance technology. However, his ascent leads to serious risks.
The most worrying aspects of these models are confidentiality and data security problems. The fact that such advanced models can be developed at a fraction of standard spending stimulate innovation and investment prospects, but at what cost?
Cost reduction AI models can create dangerous vulnerabilities, even if they democratize the development of AI. A recent Cisco study revealed that the DEEPSEEK R1 model had a 100%attack success rate. In simple terms, the model failed to block a single harmful prompt. Why does security take a rear seat for such an innovation?
Deepseek Sparks Ai Frenzy in China
Deepseek developers claim that his chatbot R1 costs a fraction of what competitors like Openai spend. The voices of the industry have described this as the biggest history of IA chatbot since November 2022. Microsoft and Amazon Web Services have quickly evolved to take care of Deepseek.
This progress is accompanied by risks. The AI model of Deepseek stores user data on servers in China. Chinese law obliges companies to share data with state agencies. This policy can allow the Chinese government to collect American consumer data.
Openai has raised worries about Deepseek in a letter to the US government. The 15 -page letter stressed that Deepseek’s progress, in particular with its R1 model, shrink the American Lead in AI.
From a financial point of view, the announcement of Deepseek sparked a world panic. Technological actions have dropped sharply. Nvidia, a leader in flea manufacturing, lost almost 17% in a single day. Investors have reassessed the cost and competitiveness of the AI industry. The loss of market value has reached hundreds of billions of dollars.
As the feeling of risk spread, shock waves quickly moved to other sectors such as crypto. Rapid reaction and precipitated itself is a critical concern. If AI developers want to take advantage of this low -cost development trend, we could see more models like Deepseek emerge which sacrifices user confidentiality for rapid deployment.
The effects of the fallout on the crypto
The Deepseek saga has revealed a more worrying trend for the cryptographic industry. Cryptocurrencies have become closely linked to technological actions. When Deepseek made the headlines, the cryptography market was not spared. Bitcoin (BTC), the most important digital asset, fell below $ 100,000.
Analysts also noted that the correlation of bearing six months of Bitcoin with the NASDAQ composite reached approximately 0.5. This indicates that risk assets like Bitcoin follow suit when technological stocks vacillate. Thus, future developments that damage the consumer technological market can also wreak havoc on the cryptography market.
Critics, including Jean Rausis de Smardex, argue that Deepseek technology “has nothing to do with Bitcoin” at a fundamental level. The fear of the market in force, however, noted that any shock in the technological sector quickly transmitted to the cryptography market. Many bitcoin minors had passed through the operations of the AI data center and saw shares decrease by 13% to 18%. This drop added to the overall uncertainty on the market.
Another concern is the increase in the avenue of scams. Several tokens on the theme of depth or even false tokens have emerged and drew the attention of investors. New investors would have very little trade in decentralized exchanges and the identification of pump and delight or rug-pull diets.
Security risks that cannot be ignored
Security researchers stressed that the IOS Deepseek R1 application uses obsolete encryption. These faults expose users at the risk of cyber attacks and data violations.
This cost reduction can leave the system vulnerable to handling and improper use. The possibility that a low -cost AI model can serve the interests of foreign states throw a shadow on its adoption.
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The safety risks of this nature require urgent attention to companies and regulators. US officials are concerned about the storage of sensitive consumer data on Chinese servers. Regulators can impose stricter data protection standards to protect market trust. Industry experts also debate the long -term influence of Deepseek. Some maintain that its profitability could advance the entire AI sector.
They see lower training costs as an opportunity to stimulate innovation and increase competition. This could lead to a broader adoption of AI tools and a lower cost. However, security gaps are not resolved. The risk that cheaper models expose users to data violations and cyber attacks eclipse the potential advantages.
What awaits us?
While regulators and industry leaders intervene to examine these questions, the future of AI depends on how we manage these security risks. We must require higher data protection standards, even if we are pressure for innovation.
The case of Deepseek reminds us that breakthroughs in terms of efficiency must be accompanied by strong guarantees. The choices will now shape the future of AI and consumer data protection. The debate on cheaper, faster but more risky technology is far from over and will continue to influence the technological and cryptographic space for the years to come.
Opinion of: Ahmad Shadid, CEO of O.xyz.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
