Dealbook: Deepseek forces a global reassessment of the technology market
The deepseek effect
Markets are nervous on Monday, as global technology investors face a loss of $ 1 trillion. The cause: The apprehension that the emergence of a powerful – and cheap – Chinese artificial intelligence software can destabilize the AI economy.
Nasdaq’s futures plummeted almost 4%. And Nvidia’s actions, chips manufacturer whose processors help to train and run AI software, fell 11% in pre-market negotiations. Constellation Energy, an energy company that bets heavily on feeding AI data centers have fallen almost 13%.
Meanwhile, technology executives and policy makers wonder how strong America’s leadership is.
Read more: What is DeepSeek? Meet Ia Chinese who challenges global technology giants
DeepSeek is forcing a revaluation in the Silicon Valley. The company’s models seem to rival OpenAi, Google and Meta, despite US government efforts to limit China’s access to the end -of -the -art technology. And DeepSeek claims to have done it all with a fraction of the resources that American competitors use.
During the weekend, DeepSeek fired to the top of Apple’s App Store charts, rivaling with chatgpt. And DeepSeek is drastically reducing prices from OpenAi.
This raises a series of questions:
- Are the main AI companies, such as Google, Goal, and the private OpenAi and Anthropic, deserve their astronomical evaluations?
- Does companies need to spend hundreds of billions on vast data centers fed by extremely expensive nvidia chips and others? Consider that OpenAi and its partners have promised to spend at least $ 100 billion on its Stargate project, or that Microsoft said it will spend $ 80 billion, or the target $ 65 billion.
- Does America need a large increase in electricity generation that has fueled the discharge in utility actions?
American technology companies are hurrying to answer. He reports that the goal has charged several teams of engineers to closely examine DeepSeek to see how they can improve their own AI software, Llama.
American AI providers are running to dissuade customers to move to the cheapest deepSek offers. (One possible obstacle to some is that DeepSeek, being a Chinese company, will not answer questions about sensitive topics, such as those involving China leader Xi Jinping, although developers say it is easy to modify the software.)
Satya Nadella, CEO of Microsoft, has a more positive view: a more efficient and affordable AI can lead to a moment of “jevan paradox”: “As Ia becomes more efficient and accessible, we will see its use trigger, transforming -A in a commodity we just can’t quench, ”he wrote at X.
What will policy formulators do? President Trump and other Western leaders are eager to reveal measures to strengthen their local AI industries, both helping them grow and imposing restrictions on Chinese rivals. But Deepseek suggests that there are limits to this approach.
Expect difficult questions from analysts this week, especially as four of the so -called seven magnificent giant technology, including Meta and Microsoft, disclose their results.
