Bloomberg Technology DeepSeek's AI Brings Tech Rout
Jan 27, 2025
Tony Wong, a portfolio manager at T. Rowe Price and a key NVIDIA shareholder, delves into the impact of China's AI startup DeepSeek on the tech market. He discusses how DeepSeek's innovations could revolutionize AI costs and challenge major players like NVIDIA. The conversation highlights the geopolitical tensions affecting tech investments and the significance of responsible AI usage. Wong also analyzes the need for the U.S. to boost chip manufacturing and navigate the shifting dynamics in the semiconductor and fintech sectors.
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DeepSeek's Impact
- DeepSeek's success disrupts the tech market, causing NVIDIA's largest market cap drop.
- This raises questions about the future of AI, compute power, and chip demand.
Shift in Power
- DeepSeek's lower prices empower software developers to use AI more extensively.
- This shifts power from chip makers to software companies, impacting margins and strategies.
Increased AI Adoption
- DeepSeek's efficiency increases AI demand and ubiquity, potentially expanding the market.
- The lower cost of AI may drive greater consumption, similar to Javon's paradox.