Necessity might be the mother of all invention, but sparking the mother of all selloffs seemed like a stretch.
That wasn’t the case Monday morning, though, as U.S. markets opened to fresh fears about DeepSeek. The Chinese artificial-intelligence startup announced a significant breakthrough late last week with AI models that perform nearly on par with advanced U.S.-born technology. The rub is that ...
The strongest version of this narrative highlights a legitimate concern: DeepSeek’s cost efficiency could disrupt the AI industry’s economic and competitive balance. If true, the $5.6 million training cost versus the $100 million+ spent by U.S. firms suggests a potential shift in how AI development is resourced, with implications for innovation speed and accessibility. However, the framing leans into market fear without interrogating the claims’ validity or broader context. For instance, the art...