Real Vision: Finance & Investing

Macro Monday: Chinese AI DeepSeek Scares U.S. Market ft. Andreas Steno & Mikkel Rosenvold

Jan 27, 2025
The podcast dives into how China's AI tool, DeepSeek, is shaking up the U.S. market, causing panic among tech investors. It explores the tool's competitive edge over existing technologies and its implications for tech stocks and semiconductor demand. The discussion highlights the looming economic singularity expected by 2030 and the historical context of China's tech advancements. Additionally, it uncovers the evolving dynamics of U.S. trade policies and the influence of market sentiment on cryptocurrency amidst these shifts.
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INSIGHT

Tech Sell-off Due to DeepSeek

  • Tech stocks, including Nvidia, Meta, and Alphabet, experienced a significant drop.
  • This was triggered by DeepSeek, a Chinese AI company, causing a market sell-off.
INSIGHT

DeepSeek's Efficiency Disrupts the Market

  • DeepSeek's AI model offers comparable performance to OpenAI but with much lower computational power requirements.
  • This efficiency gain could disrupt the semiconductor market, particularly for Nvidia.
INSIGHT

Lower Entry Barriers Boost GPU Demand

  • DeepSeek's increased efficiency lowers entry barriers for large language models.
  • This will boost demand for underlying hardware like GPUs, benefiting companies like Nvidia in the medium term.
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