Nuno Amaral @nunoms: "The start of the new..."

Portugal

The start of the new week is being marked by sharp falls in the indices, due to potential shifts in the balance of power in the rapidly developing artificial intelligence (AI) sector. Today's sell-off on Wall Street can be attributed to the debut of the DeepSeek V3 AI model. The Chinese model “shook” the Nasdaq 100 index, causing futures to fall by more than 2.5% at the start of the week. Today's falls are significant. Nvidia shares are down 6.5% in pre-market trading, Microsoft is down 3.3%, Bitcoin is down 5.4% and the VIX fear index is up 9%. The company DeepSeek claims to have spent approximately 6 million dollars and only a few months to train the new AI model. This is only a fraction of the money and time that American competitors had to invest to train the AI models developed by the major tech conglomerates. This has led some investors to question the justification for the huge investments in AI development by American companies. Despite previous beliefs that China was lagging behind in this field, the competition seems to have developed its technology much more cheaply and, apparently, just as efficiently. Rumors suggest that the company used older generation Nvidia H800 chips. Some sources indicate that DeepSeek, backed by Chinese fund High Flyer Capital, may have used between 10,000 and 50,000 older Nvidia AI chips, despite US export restrictions. Even in this scenario, the upper limit of these chips corresponds to only around 10% of those used by the main American AI models, such as ChatGPT. The DeepSeek V3 model was launched on January 10th as an open source platform. It can be modified and its inference process is transparent, unlike OpenAI's products and many other “western” AI models. Unlike OpenAI and other Western AI companies, DeepSeek is expected to reach profitability much more quickly and avoid dependence on “external funding injections”. The latest figures show that DeepSeek has overtaken ChatGPT in downloads from the Apple Store. The model's debut could serve as a warning to investors regarding the high valuations of American stocks. Wall Street may begin to question whether multi-billion dollar investments in AI infrastructures are really necessary. $NVDA (NVIDIA Corporation) $NSDQ100 $MSFT (Microsoft) $ORCL (Oracle Corporation) $SPX500

5 Mentioned

NVDA

NVIDIA Corporation

NSDQ100

MSFT

Microsoft

ORCL

Oracle Corporation

SPX500

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