Shares of U.S. tech, data center and energy firms plummeted Monday morning following the unveiling of DeepSeek, a Chinese artificial intelligence model that rivals those of U.S. tech giants — and was produced at a fraction of the cost while using far less computing power.
The emergence of DeepSeek’s R1 model has raised questions about the hundreds of billions of dollars in investments that tech giants like Microsoft, Amazon, Google and Meta are making on high-performance AI chips, data centers and the energy infrastructure needed to support them.
While the best models from U.S. tech firms still outperform R1, the efficiency of the Chinese model reportedly had Meta engineers “in panic mode” and has generated amazement from tech leaders like venture capitalist Marc Andreessen, who wrote on X that it is “one of the most amazing and impressive breakthroughs I’ve ever seen” and AI`s “Sputnik moment.”...
While the best models from U.S. tech firms still outperform R1, the efficiency of the Chinese model reportedly had Meta engineers “in panic mode” and has generated amazement from tech leaders like venture capitalist Marc Andreessen, who wrote on X that it is “one of the most amazing and impressive breakthroughs I’ve ever seen” and AI`s “Sputnik moment.”...
RSK: And plunge they did...but I would be very weary about what a Chinese company has to say until proven true. ChatGPT is still a much better program. Maybe they can figure out how to use less power and chips as well.. In either case, the Data Centers sector of CRE will cool off for now until this is all settled out. If you are involved in any of the speculation I would take heed.
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- - Volume: 25 - WEEK: 6 Date: 2/4/2025 2:47:50 PM -