DeepSeek’s AI shake-up to reshape markets?

Chinese AI start-up DeepSeek is shaking up global markets, triggering a tech valuation reset and challenging giants like Nvidia. Experts say this shift is reshaping investment strategies, creating both risks and opportunities.

DeepSeek is a Chinese AI start-up making waves with budget-friendly models that rival top Western AI systems. Its breakthrough large language model (LLM) has introduced a new paradigm in AI development, according to George Lagarias, chief economist at global professional services network Forvis Mazars. By delivering comparable performance to leading Western models like GPT-4 at lower costs and with less reliance on high-end graphics processing units (GPUs), DeepSeek has disrupted the established narrative of what is required to lead in AI. This, in turn, has catalysed a market correction, particularly affecting tech giants tied to AI advancements. “DeepSeek’s large language model catalysed a correction for the technology sector, especially Nvidia,” explained Lagarias. Nvidia, a perfect example of AI-driven growth, saw its value drop to about 17% from recent highs last Monday. US large-cap stocks, more broadly, fell 1.5% earlier this week, George pointed out.

Continue reading HERE