China’s Seven Titans vs Wall Street’s Magnificent Seven: DeepSeek sparks stocks re-rating
DeepSeek, a Chinese AI start-up, has sparked a global reassessment of technology stock valuations with its low-cost large language model (LLM). The company's namesake app, released on January 20, quickly surpassed OpenAI's ChatGPT as the most downloaded freeware app on the iOS app store in the US, leading to a surge of investment in Chinese stocks.
The release of DeepSeek's LLM has raised questions about the valuation of US technology stocks, particularly Nvidia, whose stock value significantly dropped after investors realized that LLMs could be developed at a lower cost. Bonnie Chan, CEO of Hong Kong Stock Exchanges and Clearing, highlighted this shift at a conference, suggesting that investors may need to reconsider the attractiveness of stocks in other regions, including Asia.
via SCMP Full Text Feed
DeepSeek, a Chinese AI start-up, has sparked a global reassessment of technology stock valuations with its low-cost large language model (LLM). The company's namesake app, released on January 20, quickly surpassed OpenAI's ChatGPT as the most downloaded freeware app on the iOS app store in the US, leading to a surge of investment in Chinese stocks.
The release of DeepSeek's LLM has raised questions about the valuation of US technology stocks, particularly Nvidia, whose stock value significantly dropped after investors realized that LLMs could be developed at a lower cost. Bonnie Chan, CEO of Hong Kong Stock Exchanges and Clearing, highlighted this shift at a conference, suggesting that investors may need to reconsider the attractiveness of stocks in other regions, including Asia.
via SCMP Full Text Feed
