The DeepSeek AI chatbot burst onto the scene: are fears about it overblown?
Published On Jan 28, 2025, 6:00 AM
DeepSeek, a Chinese AI startup, has released a new AI model that claims to be significantly cheaper to use than OpenAI's offerings. This has sparked concerns over the competitive landscape in AI and whether U.S. firms are losing their edge. While some analysts see DeepSeek's advancements as a major threat, others argue that it doesn't pose a serious challenge to established players like Nvidia and that it primarily serves consumer use cases rather than broader, more complex AI infrastructure needs.
Stock Forecasts
NVDA
Positive
Investing in companies with established AI capabilities is seen as a strong opportunity. Companies like Nvidia and Microsoft are noted to still hold the necessary resources to compete effectively in the AI space. Current sell-offs in the tech sector may represent a buying opportunity for these stocks as deeper relationships with AI infrastructure continue to grow.
Related News
Tech Stock Sell-Off Eases After DeepSeek Scare
Jan 28, 2025, 1:55 AM
Investors around the world are reassessing the prospects for technology companies after a Chinese artificial intelligence start-up rocked markets in the United States on Monday.
US tech shares recover some losses from steep DeepSeek selloff
Jan 28, 2025, 12:24 PM
NEW YORK/BENGALURU/LONDON (Reuters) -Technology shares on Tuesday regained some ground lost and AI chip leader Nvidia rose more than 6% after the previous day's record-breaking wipeout sparked by a low-cost Chinese artificial intelligence model that threatens the dominance of U.S. rivals. On Monday, Nvidia lost about 17% or close to $593 billion in market value - a record one-day loss for any company, while shares of companies in semiconductor, power and infrastructure companies exposed to AI collectively shed more than $1 trillion. Monday's selloff was prompted by the release of a free AI assistant launched by China's DeepSeek last week that the startup said uses less data at a fraction of the cost of incumbent services.
Trump Renews Universal Tariff Threat to ‘Protect Our Country’
Jan 28, 2025, 6:18 AM
(Bloomberg) -- President Donald Trump said he wants to impose across-the-board tariffs that are “much bigger” than 2.5%, the latest in a string of signals that he’s preparing widespread levies to reshape US supply chains.Most Read from BloombergTexas HOA Charged With Discrimination for Banning Section 8 RentersBudapest Mayor Aims to Block Orban’s Plans to Build ‘Mini Dubai’Vienna Embraces Heat Pumps to Ditch Russian GasBillionaire Developer Caruso Slams LA Leadership Over WildfiresFire-Ravaged L