UnHerd with Freddie Sayers John Rapley & Philip Pilkington: Is a market crash coming?
Jan 27, 2025
John Rapley, an economist and author of "Why Empires Fall," teams up with macroeconomist Philip Pilkington, host of the Multipolarity podcast. They delve into the significant decline in US tech valuations and the disruptive rise of the Chinese AI app Deep Seek. The duo analyzes potential indicators of a forthcoming market crash, debates the contrasting economic philosophies of the Trump era, and discusses the shifting investments of global elites at Davos. With a blend of skepticism and insight, they navigate the turbulent waters of today’s economy.
AI Snips
Chapters
Transcript
Episode notes
DeepSeek's Disruption
- DeepSeek, a Chinese AI model, has disrupted the market by being significantly cheaper and open-source.
- This has caused major concern for US tech companies reliant on expensive proprietary AI models.
NVIDIA's Vulnerability
- NVIDIA's valuation was heavily tied to AI chip sales, representing a large portion of the NASDAQ.
- DeepSeek's efficiency reduces chip demand, threatening NVIDIA and potentially bursting the AI bubble.
AI Bubble Risk
- The stock market boom is largely driven by a few companies with high valuations based on the promise of revolutionary AI breakthroughs.
- DeepSeek's cost-effectiveness challenges this narrative and could lead to a bear market.