China's DeepSeek Releases New Open Source AI Model Amid Google's Gemini 3 Roll Out

Core Insights - The release of China's DeepSeek advanced open-source AI model has intensified competition in the AI sector, particularly against established players like Google and Nvidia [1][3] - Chinese companies are increasingly focusing on open-source AI models, which are accessible and free for developers, leading to more efficient models that require less computing power [2] - Google's Gemini 3, launched on November 16, 2025, aims to compete with OpenAI's GPT-5 and Anthropic's Claude family, enhancing capabilities in coding, searching, and image creation [4] Group 1: Chinese AI Developments - Chinese firms, including Baidu and Alibaba, are pushing the boundaries of open-source AI, with DeepSeek's new model demonstrating strong performance in mathematical reasoning [2][3] - DeepSeek has significantly reduced its API pricing by 63%, making it the lowest globally, which could drive application development and user adoption in China [8] Group 2: Competitive Landscape - Meta Platforms has lost its leading position in open-source AI to Chinese companies, marking a shift in technological competitiveness [3] - Nvidia's stock experienced volatility, dropping 17% after DeepSeek's model release but rebounding to a 30% gain in 2025, highlighting the fluctuating nature of AI stocks [7] Group 3: Google and Market Reactions - Google stock surged by 68% in 2025 as the company effectively integrated AI across various sectors, including search, cloud computing, and digital advertising [6] - Investor concerns regarding Google's core internet search business have been heightened since the introduction of ChatGPT, which provides direct answers to queries [5]