Planet Money How DeepSeek changed the market's mind
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Feb 1, 2025 A new AI model from DeepSeek shakes the stock market, causing a massive revaluation in AI-related companies. This shift raises questions about the future of AI dominance and the necessity of high-end computer chips. The episode also delves into the energy demands of AI technologies and the impact on energy markets. Discussions include how DeepSeek’s cost-effective approach could democratize AI access, reshaping market dynamics and investment strategies. Major players like NVIDIA and Salesforce feel the aftershocks of this surprising industry disruption.
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Market Tizzy
- Planet Money hosts reacted to the stock market's downturn due to DeepSeek's AI model.
- The market's reaction was described as an AI apocalypse and a monumental shift.
AI Arms Race
- OpenAI's ChatGPT, launched in 2022, set the stage for an American AI arms race.
- Companies like Google, Meta, and Microsoft invested heavily in large, expensive AI models, assuming this was necessary for competitiveness.
DeepSeek's Impact
- Angelo Zeno, an analyst at CFRA Research, received inquiries from European investors early Monday morning about DeepSeek.
- DeepSeek, a subsidiary of a Chinese hedge fund, openly developed its AI model, initially for internal use.