In recent weeks, the tech and financial world has been stunned by the emergence of DeepSeek, a Chinese artificial intelligence (AI) model that rivals major players like OpenAI. The launch of DeepSeek has not only shaken the tech stock market but also influenced the crypto ecosystem, particularly tokens focused on AI Agents. How is DeepSeek connected to the resurgence of AI tokens? Find out in this review!
DeepSeek: A Revolutionary AI with Low Costs
Developed in Hangzhou, DeepSeek has gained attention for its claim of competing with top AI models like OpenAI while maintaining significantly lower production costs. With an innovative approach to using simpler chips, DeepSeek has managed to reduce development costs to just $6 million, compared to models like GPT-4, which required over $100 million.
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This success not only poses a new challenge for big tech companies but has also shaken the stock market. Nvidia, one of the largest chip manufacturers, experienced a market cap drop of nearly $600 billion due to concerns that AI models like DeepSeek could reduce demand for high-end chips.
DeepSeek’s Impact on Crypto AI Agents
The emergence of DeepSeek has indirectly impacted the cryptocurrency market, especially projects focused on AI Agents. After Alibaba launched Qwen 2.5, claiming to outperform DeepSeek-V3, investors began shifting their focus to more decentralized AI projects. As a result, AI-based tokens like Virtuals Protocol surged by over 8%, while AIXBT and Ai16z saw gains of more than 10%.
Previously, the hype surrounding DeepSeek had diverted investor attention from AI-based tokens, causing a significant valuation drop of up to $5 billion. However, as the market recognized the potential of more open and decentralized AI projects, interest in crypto AI Agents rebounded.
Challenges and Controversies Surrounding DeepSeek
DeepSeek’s success has not come without controversy. OpenAI has accused DeepSeek of using a technique called "distillation" in training its model—leveraging outputs from OpenAI’s models to enhance its AI’s performance. This technique has sparked ethical and legal debates within the AI community.
Additionally, data protection authorities in Italy have launched an investigation into DeepSeek regarding its use of personal data, leading to its removal from the App Store and Google Play in the country. Data security remains a major concern for regulators and users considering DeepSeek’s services.
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Conclusion
DeepSeek has proven that advanced AI can be developed at lower costs, but its impact on the tech and financial industries is still unfolding. While major companies like Nvidia face pressure, AI-based projects in the crypto space are gaining new momentum.
As AI technology continues to evolve and demand for more efficient and decentralized models grows, crypto AI Agents may play a crucial role in the future financial ecosystem. Will DeepSeek lead the AI revolution, or will it pave the way for decentralized AI projects to shine? Only time will tell.
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Sources:
AI Agent Coins Rebound as DeepSeek Faces Major Setbacks. Accessed in 2025. BeInCrypto.
DeepSeek: The Chinese AI app that has the world talking. Accessed in 2025. BBC.
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