After DeepSeek Upended the Market, Is It Worth Investing in A.I.?

Published On Feb 7, 2025, 9:00 AM

The article discusses the impact of a new, cheaper AI model from a Chinese start-up, DeepSeek, and how it challenges the previously inflated values of major U.S. tech companies heavily invested in AI, such as Nvidia, Meta, and Tesla. It raises questions about the economic viability of investing billions into AI technology when similar results can potentially be achieved at a lower cost. Additionally, notable economist Daron Acemoglu expresses skepticism about the hype surrounding AI, suggesting that many valuations are based on exaggerated future projections rather than solid economic fundamentals.