Market Reactions to Deep Seek

A significant sell-off in U.S. technology stocks has caused investors to express serious concerns, with fears that the Deep Seek AI model from China might be a game changer in the industry. Deep Seek, developed at a fraction of the cost of its competitors, is seen as highly disruptive due to its open-source nature, allowing for widespread adaptation without hefty licensing fees. This innovation is contributing to market jitters, particularly affecting businesses reliant on GPU sales, such as NVIDIA and AMD, leading to declines in their stock prices. The reduced demand for chips could signal a potential bubble burst in the AI sector, which has seen inflated valuations driven by previous technological advancements.