Squawk on the Street Market Sell-Off: China AI Push Sparks Tech Tumble, Nvidia's Double-Digit Slide 1/27/25
Jan 27, 2025
A turbulent market kick-started the week as fears of competition from China's AI startup DeepSeek caused a widespread sell-off, especially for tech giants like Nvidia. The discussion highlights the geopolitical implications of emerging foreign technologies and the shift from hardware to open-source models in AI. Amidst this chaos, AT&T posted a surprising earnings beat, and market watchers are keeping a close eye on upcoming economic data and its influence on different sectors. Plus, there’s a celebratory note with Jim cheering for the Eagles' latest victory!
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DeepSeek Disrupts AI Landscape
- DeepSeek's lower cost and competitive AI model sparks a sell-off, impacting NVIDIA and chip makers.
- The success of this Chinese open-source model questions the current AI landscape and buildout.
DeepSeek Censorship
- Jim Cramer questions whether companies will pause NVIDIA orders or continue investing despite competition.
- He highlights DeepSeek's censorship of the Tank Man image, raising trust concerns for American companies.
DeepSeek Privacy Warning
- Users downloading DeepSeek should carefully review its terms of service.
- The app may have extensive access to user data, including Gmail, raising privacy concerns.