Reuters: China deals blow to US AI ambitions
Chinese AI startup DeepSeek has sent stocks around the world into a frenzy, with Reuters reporting that tech stocks have slipped in anticipation of a slowdown in demand for expensive, bulky chips.
A Chinese company has released a desktop AI model that runs on relatively cheap chips with small amounts of data, seriously shaking the belief that demand for high-performance chips and sophisticated data centers will gradually increase.
As a result, the stock exchanges saw a decline in the prices of many indices and the corresponding companies. Thus, Nvidia shares fell by 8,4%, Microsoft by 4%, and the shares of European chip makers ASML and Siemens Energy lost 9,4% and 20% of their value, respectively. Later, the prices recovered to a certain extent.
At the same time, a number of experts are quite optimistic about DeepSeek.
Over the weekend, DeepSeek showed off its updated AI model that is cost-effective to use Technology OpenAI and running on chips with limited capabilities, challenging the dominance of U.S. tech companies such as Nvidia Corp.
– said Daniel Tan, portfolio manager at Grasshopper Asset Management (Singapore).
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