Post by @Nonilex@masto.ai

#China’s #DeepSeek #AI app sends US #tech stocks reeling
The tech-heavy #Nasdaq lost nearly 4% in early trading Mon, several tech companies that banked on a surge of AI interest sold off, w/ US chipmaker #Nvidia down >12% as trading got underway.
Analysts said the sell-off underscores anxieties about whether the massive spending on #ArtificialIntelligence ― & the specialized chips, #DataCenters & related #power #infrastructure ― are justified.

#technocracy #broligarchy
https://www.washingtonpost.com/business/2025/01/27/deep-seek-ai-markets-nvidia/

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#technocracy #broligarchy #nasdaq #deepseek #nvidia #power #datacenters #infrastructure #china #artificialintelligence #ai #tech

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Mastodon Migration

@mastodonmigration@mastodon.online 2 yr. ago

@Nonilex

So let's get this straight. AI is supposedly a good thing. Turns out it is easier to do than we thought. So the stock market tanks.

Nonilex

@Nonilex@masto.ai 2 yr. ago

@mastodonmigration pretty much

Mastodon Migration

@mastodonmigration@mastodon.online 2 yr. ago

@Nonilex

@mschwinges links this pretty technical explainer:

https://stratechery.com/2025/deepseek-faq/

Short summary: The US "chip ban" cut off access to the best Nvidia chips, so the Chinese developed better algorithms that could run on weaker chips and also created their own chips. This makes AI much much cheaper, so the US tech industry that relies on selling expensive AI stuff is screwed, but it's good in the long run for sectors that use AI in their products.

Stratechery by Ben Thompson

DeepSeek FAQ

DeepSeek has completely upended people’s expectations for AI and competition with China. What is it, and why does it matter?

1 year later

Nonilex

@Nonilex@masto.ai 18 min. ago

@mastodonmigration @mschwinges