MrKnoot @MrKnoot: "$AMZN, $AAPL and $META are..."

United Kingdom

$AMZN (Amazon.com Inc), $AAPL (Apple) and $META (Meta Platforms Inc) are down big in overnight trading because DeepSeek shows AI training might actually be cheaper than expected. Makes 0 sense, and reveals the lack of understanding most people have on the economics of the AI business. These companies will be the biggest beneficiaries of cheaper AI. Their competitive proposition comes from leveraging their platforms to promote AI-based solutions, not from they developing the exclusive AI models. They are spending an indecent amount of money on developing these models. But if they could cut that cost out, their competitive advantage would be the same or better. Just their margins would improve. Which is why Zuck insisted on releasing the LlaMa model as Open Source. Because he understood this. DeepSeeker should scare the hell out of OpenAI. Perhaps even $NVDA (NVIDIA Corporation) investors. They do depend on gatekeeping models quality - or the tools to train such models. But the companies that own the means of distribution can only benefit from cheaper AI.

4 Mentioned

AMZN

AAPL

META

NVDA

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