DeepSeek’s R1 AI model might be the first time an open-source release crashed the NASDAQ. The markets reacted strongly for a simple reason. DeepSeek appears to have created a much cheaper way to deliver high-quality AI applications, on par with the efforts of industry giants like OpenAI and Anthropic. DeepSeek was able to produce its high-quality model with far fewer computing resources than comparable models. For NVIDIA and the entire bull market on AI data infrastructure, DeepSeek implied that massive data centers and $500 billion projects like Stargate would not be required to train and deliver industrial-grade AI.
Comments