The Fox News Rundown Business Rundown: China's DeepSeek AI Spurs Tech Stock Spiral
Jan 27, 2025
Brian Jacobsen, Chief Economist at Annex Wealth Management, sheds light on the turbulence in tech stocks spurred by China's DeepSeek AI, showcasing its cost-effective capabilities. He emphasizes that this scenario might actually present a buying opportunity for savvy investors. Additionally, Jacobsen discusses the pivotal role tariffs may play in U.S. trade strategy, particularly in negotiations with Colombia. He encourages a strategic re-evaluation of tech investments, pointing to potential growth in healthcare and technology sectors.
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DeepSeek Disrupts Tech Stocks
- Tech stocks stumbled after Chinese startup DeepSeek demonstrated running a ChatGPT-style AI model at a fraction of the cost of US competitors.
- This raises concerns for investors about the future of the tech sector and whether this signals a broader problem.
Opportunity in AI Disruption
- View DeepSeek's cost-effective AI model as an opportunity rather than a threat. This could push US companies to innovate faster and focus on efficiency.
Evaluating DeepSeek's True Impact
- While DeepSeek's AI model appears impressive, further data is needed on training costs to determine its true impact. American companies must improve their game.