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Nightmare on Wall Street as tech stocks set to lose $1T over Chinese AI startup DeepSeek
NY Post ^ | 1/27/2025 | Thomas Barrabi and Ariel Zilber

Posted on 01/27/2025 9:48:41 AM PST by frogjerk

Major US tech stocks like Nvidia, Microsoft, Meta and Tesla were set for a stunning $1 trillion rout on Monday as fears over an advanced Chinese artificial intelligence model triggered hysteria from Wall Street to Silicon Valley.

Shares of Nvidia plunged nearly 13% in early trading, erasing hundreds of billions in value as investors learned about DeepSeek — a China-based startup which has made waves in the industry after launching a free, open-source large-language model in December.

DeepSeek claims to have developed the advanced model in just two months at a cost of under $6 million — and without access to Nvidia’s best computer chips. That’s a stark contrast to the billions of dollars typically spent by Western tech giants on AI research and chips.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: ai; chinaai; deepseek; economy; market; nasdaq; stockmarket
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Is this DeepSeek for real or a cold fusion scam?
1 posted on 01/27/2025 9:48:41 AM PST by frogjerk
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To: frogjerk

I wonder how much farther we’d be, if that DEI money found its way into research?


2 posted on 01/27/2025 9:49:50 AM PST by Jonty30 (If you ate your twin in the womb, your pronouns should be we/us.)
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To: frogjerk
All the claims about Deep Seek's R1 AI platform are unverified and unverifiable.

I wonder how much Nvidia they sold short before this recent announcement.

3 posted on 01/27/2025 9:51:02 AM PST by RoosterRedux ("There's nothing so inert as a closed mind" )
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To: RoosterRedux

DeepSeek turning into a DeepFake?


4 posted on 01/27/2025 9:51:40 AM PST by frogjerk
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To: frogjerk

I’m not at all qualified to spout an opinion on investments, but ... This news from China is, as far as I know, unverified. The warts (there are always warts) are not discussed. If I were moving money in the market, I’d put money on companies like Nvidia. Buy on the dip.


5 posted on 01/27/2025 9:52:42 AM PST by ClearCase_guy
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To: frogjerk

Try it locally. I believe both tools mentioned have Windows equivalents:

https://www.reddit.com/r/selfhosted/comments/1i6ggyh/got_deepseek_r1_running_locally_full_setup_guide


6 posted on 01/27/2025 9:52:56 AM PST by bobcat62
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To: frogjerk

Bargain hunters’ delight.


7 posted on 01/27/2025 9:53:06 AM PST by Antoninus (Republicans are all honorable men.)
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To: frogjerk

It’s “AI” isn’t it?


8 posted on 01/27/2025 9:53:11 AM PST by Frank Drebin (And don't ever let me catch you guys in America!)
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To: frogjerk

“$1 trillion rout”

It might cost $5,000/year to hire a compiler of information in the Third World.


9 posted on 01/27/2025 9:55:09 AM PST by Brian Griffin
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To: frogjerk

Deepseek has hired 20 million Chinese communists to answer your queries in realtime.


10 posted on 01/27/2025 9:55:41 AM PST by armourenthusiast (I capitalize everything related to South)
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To: frogjerk

This has got to be the biggest over reaction of all time.


11 posted on 01/27/2025 9:55:46 AM PST by packrat35 (Pureblood! No clot shot for me!)
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To: RoosterRedux
Are the Chinese being as truthful about the costs of their AI startup as they were about the origins of Covid?
12 posted on 01/27/2025 9:56:05 AM PST by CaptainK ("No matter how cynical you get, it is impossible to keep up” )
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To: RoosterRedux

I will be buying NVDIAS at the open tomorrow.


13 posted on 01/27/2025 9:56:17 AM PST by packrat35 (Pureblood! No clot shot for me!)
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To: frogjerk

Unknown but the low figure being claimed is incomplete according to some.


14 posted on 01/27/2025 9:56:39 AM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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To: packrat35

you mean more then Y2K?


15 posted on 01/27/2025 9:57:21 AM PST by Jaysin (Trump can't be beat, unless the democrats cheat)
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To: frogjerk
I wouldn't be surprised. They said they trained it for $5.6 million (when OpenAI spends hundreds of millions) and that it was developed in under two months.

The CCP would have us believe that they can do something that Musk cannot.

I'm not buying it.

16 posted on 01/27/2025 9:57:32 AM PST by RoosterRedux ("There's nothing so inert as a closed mind" )
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To: packrat35

I already bought some and will buy more if it stays down or drops more.


17 posted on 01/27/2025 9:58:17 AM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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To: frogjerk

Yeah, but the Large Language Model (LLM) is not the big deal - despite all that “generative intelligence” (robot chat) hype.

The big deal is the very high-speed management of data - that takes an AI pattern recognition system to control the data pumping and parking - the flow.

IMHO


18 posted on 01/27/2025 9:58:58 AM PST by linMcHlp
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To: frogjerk

History is accelerating at breakneck speed.


19 posted on 01/27/2025 9:59:17 AM PST by Uncle Miltie (Call Traitor General Milley back into service, bust him to private, courtmartial, convict, hang.)
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To: ClearCase_guy

Nvidia makes wonderful chips, but software will triumph.

Your object as a tech investor should be to make your comparatively small investment pot grow much bigger.

Tech investing is always risky as tech changes faster than most other things.


20 posted on 01/27/2025 10:00:18 AM PST by Brian Griffin
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