Dumb Money Live Our DeepSeek stock trades — winners and losers
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Jan 28, 2025 DeepSeek is shaking up the tech world and influencing giants like NVIDIA and Microsoft. The hosts dive into its cost-effectiveness and potential impacts on AI investments. They discuss how recent advancements are causing market uncertainty, especially for key players like Google. As AI transforms online search behavior, traditional platforms face serious competition. The implications of semiconductor tariffs and U.S. legislation on the industry further complicate the landscape, posing challenges for giants like OpenAI and Tesla.
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DeepSeek's Potential Market Manipulation
- DeepSeek's creators, a $7 billion hedge fund, likely shorted NVIDIA.
- Their emphasis on low AI development costs could manipulate the market.
DeepSeek's Impact on NVIDIA's Valuation
- NVIDIA's valuation relies on AI's scaling issues and high capital expenditures.
- DeepSeek's efficiency challenges this, raising questions about NVIDIA's moat.
DeepSeek's Development Process
- DeepSeek's developers worked under intense pressure, leading to innovation.
- This contrasts with American developers, who may be less driven due to wealth.