See also [1]. Apparently DeepSeek has much lower training costs to achieve ChatGPT levels of performance. Training cost to reach ChatGPT levels is said to be $3.5 million.
What do these stock drops even mean? Crowdstrike made an apoclayptic level blunder yet they are trading at the same price they were before they accidentally knocked out the whole world's IT infrastructure
My personal opinion is that a lot of investors don't really understand these tech businesses and get spooked by what they perceive as competition. Somehow the AI hype seems to have created this idea that all the major tech companies are now AI companies and are racing against each other. When one of them or an outside force starts "winning" the AI race then the other companies' stocks drop. I don't think that's actually how they should be viewed, though.
Once again that's all my opinion but because of that I actually bought some NVDA today after the DeepSeek news caused it to drop.
I think the stock market is pure evil. The only way companies can reach a high valuation is by either becoming monopolies, or convincing the investors they can become one.
This leads to all sorts of anticompetitive behaviors on their part.
The stock market is not pure evil. Private equity (which usually means the same thing as a leveraged buyout) is mostly evil. Hedge funds are mostly evil. Crypto, now that's pure evil.
I wonder if this was downvoted because i listed a source (and my comment history has the actual recording linked), or because i tongue-in-cheek suggested that $3.85mm wasn't enough for me to personally build this, but $6mm is. let me know in the comments and don't forget to like and subscribe.
GOOG stock dropped 6% on this news.
[1] https://www.cnn.com/2025/01/27/tech/deepseek-stocks-ai-china...