China’s #DeepSeek could represent the biggest threat to US equity markets as the company seems to have built a groundbreaking AI model at an extremely low price and w/o having access to cutting-edge chips, calling into question the utility of the hundreds of billions worth of capex being poured into this industry.
DeepSeek was built with 6 million $ total costs. Compare it hundreds of billions spent by Magnificient 7 driven Open AI, Claude, Perplexity etc.
DeepSeek is almost free for regular users, and professional usage is merely just a few $ (2$ or so) only. Compared to ChatGpt pro subscription price.
AI bubble popped?
If the DeepSeek results are truly real, NVIDIA could find itself in a situation eerily similar to what Cisco faced after the dot-com bubble burst in the early 2000s.
During the bubble, Cisco was a dominant supplier of networking equipment, riding a wave of…
— THE SHORT BEAR (@TheShortBear) January 25, 2025
🚨 BREAKING: DeepSeek open source AI outperforms OpenAI with only 3% of the hardware costs$NVDA may be in trouble here. https://t.co/2qpbD5hMGU
— Financelot (@FinanceLancelot) January 24, 2025
DeepSeek built an LLM for 97% less than the US — my thoughts on how the AI landscape has changed forever 🧐
The global AI landscape, once dominated by OpenAI, $GOOGL, $META & $MSFT, is undergoing a tectonic shift. At the epicenter of this upheaval is DeepSeek, an unheralded AI… pic.twitter.com/VbryvkSUHS
— Shay Boloor (@StockSavvyShay) January 25, 2025
The panic selling of Nvidia shares will make history – not a matter of if, but when, and considering how @deepseek_ai shock is spreading like wildfire the “when” seems approaching fast https://t.co/FfnKIhwMCg
— JustDario 🏊♂️ (@DarioCpx) January 25, 2025
For the first time on record, the majority of all trading in US stocks is now consistently occurring outside the country’s exchanges, according to data compiled by Bloomberg.
This off-exchange activity — which happens internally at major firms or in alternative platforms known… pic.twitter.com/JWJYzP4CHH
— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) January 25, 2025
https://twitter.com/leadlagreport/status/1882956158962676115