The general narrative is that Deepseek's capacity to replicate the success of larger models with fewer resources and less compute has led to a sell-off in AI-pumped stocks.
Bloomberg: Global Tech Stocks Plunge as China’s DeepSeek Undercuts Rivals
NVIDIA is down 18% today, or in other terms, back to September numbers. So this is both substantial, and just a sign of volatility in general.
A previously thought-to-be expensive commodity can possibly be made more cheaply. This would be a detriment to those who benefit from it being expensive, but it poses interesting questions about who benefits the most from this commodity being much cheaper.
There are massive social and geopolitical implications to this saga, of course — and interesting market implications to how this question shakes out in the near future.
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