DeepSeek: Chinese AI model rockets to top of app charts
Published On Jan 27, 2025, 5:37 AM
DeepSeek, a Chinese AI app, has surpassed ChatGPT to become the top free app on Apple's App Store in multiple countries, challenging the idea that the U.S. leads in AI. It was developed with a much lower budget than its American counterparts, raising questions about cost-efficiency in AI training. Despite its success, analysts caution that Chinese companies face challenges that could affect their growth, while U.S. firms like Nvidia and Microsoft showed declines in stock prices. The situation has the potential to disrupt investment in the AI supply chain driven by major U.S. firms.
Stock Forecasts
NVDA
Negative
DeepSeek's rise indicates a significant shift in the AI landscape, potentially impacting investments in U.S.-based AI companies negatively as they may face increased competition from lower-cost solutions. The declining stock prices of Nvidia and other major players hint at investor concerns about their market position. However, the challenges faced by Chinese firms could limit their growth and impact.
MSFT
Positive
Given the significant investment into AI infrastructure in the U.S. through initiatives like The Stargate Project, there's potential for future growth in this arena despite current setbacks. These investments could bolster the positions of companies like Microsoft and continue to fuel advancements in AI.
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