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SYDNEY: The Australian government on Wednesday warned citizens about China’s DeepSeek AI model, urging them to be cautious in their use of the new technology.
“We would urge Australians to be cautious about this new technology,” Australian Treasurer Jim Chalmers told a news conference on Wednesday.
“Obviously we are constantly receiving advice on it.”
DeepSeek is an advanced artificial intelligence model developed by Chinese tech companies, designed to perform a range of tasks such as data analysis, natural language processing, and predictive modeling. It is known for its ability to analyze vast amounts of information quickly.
DeepSeek AI Model sparks global outrage
However, concerns have arisen regarding its potential misuse, particularly in the areas of privacy, security, and surveillance. These concerns have led countries, including the United States and Australia, to issue warnings to citizens about the risks associated with using the DeepSeek AI model.
This disruptive newcomer, seemingly outpacing established US tech giants, caught traders on Wall Street and global stock exchanges completely off guard. Nvidia saw its stock price drop 11% in the aftermath of DeepSeek R1 launch, wiping off around $400 billion in market value.
In contrast to the billions that US IT companies have invested in artificial intelligence, DeepSeek claims to have spent just $5.6 million on model development.
America’s “tech dominance is being challenged by China,” XTB’s Kathleen Brooks stated. “The focus is now on whether China can do it better, quicker, and more cost effectively than the US, and if they could win the AI race.”
