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The great American technology faces the heat as China’s deep questions the expense of billions of dollars

The great American technology faces the heat as China’s deep questions the expense of billions of dollars

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San Francisco:

The Chinese Startup Depseek, the cheapest AI, is sharpening the scrutiny of the investors of the billions of American technological giants to develop technology and analysts say that it will dominate the highly anticipated results of this week of industry horn.

Deepseek has affirmed that it took only two months and cost less than $ 6 million to build an AI model using the less advanced NVIDIA H800 chips. An application driven by model V3 became the discharge of the main iPhone in the USA on Monday.

The startup founded in 2023 has said that its models of AI coincide or exceed the rivals of the United States to a fraction of the cost, challenging the opinion that the AI ​​of scale requires great computer power and investment.

This commercial need has promoted an increase of around $ 10 billion in the market value of “Magnificent Seven” companies since Chatgpt began the AI ​​boom in November 2022.

“Depseek really built OpenAi for $ 5 million? Of course not,” said Bernstein Stacy Rasgon analyst. “It seems an exaggeration to think that the innovations that are deployed by Depseek are completely unknown by first -level researchers in the other numerous laboratories of the world.”

Deepseek’s price removes anything in the competition, he said. The AI ​​Chip Pioneer Nvidia shares sank 16%, Microsoft fell 3.8%and the US TSMC actions fell by 14%.

Rasgon and other analysts argue that Deepseek’s training costs for its V3 model could be higher, since the almost $ 6 million quoted by the start only include the amount spent in computer power, while little is known about costs To build the most publicized R1 model.

Even so, it is far from the analysts of $ 250 billion that estimate that the large companies of US clouds. UU will spend this year on AI infrastructure. This expense has been questioned by investors concerned with slow returns in the last year.

With most American technological giants to inform to inform the results this week and the following, analysts and investors expect companies to offer more clarity about their strategy.

“(Deepseek Rise) questions whether the current pace of the Capex expense/technology updates is necessary. The comments of the US hyperscalers. UU. They will be key this week to see if they remain aggressive with the expenditure of AI”, The analyst said, Angelo Zino.

“They will probably emphasize the need for greater computer power as we change towards AI and the agent’s physical,” Zino added, referring to Autonomous AI agents that require little human intervention for routine tasks, as well as autonomous robots and cars.

Price impulse

While the price of the use of AI models has fallen with growing competition and technology progress, Rasgon de Bernstein said Depseek stands out, since it has set its models up to 40 times lower than Openai comparable models.

That could, analysts said, start a price war for AI services, potentially pressing technological companies such as OpenAi that are already losing billions of dollars each year due to the high operational costs of the execution of services such as Chatgpt.

“If Deepseek’s adoption intensifies, it could start competitors price reductions that have similar open source products,” said Gadjo Sevilla, Emarketer senior analyst.

“It is unlikely that market leaders such as OpenAI (pressing for profitability) decrease short -term prices. They probably double trust and security as key difference characteristics, which matter for business users.”

Some experts also doubt that American companies are willing to adopt China’s technology, given the tensions and concerns of data on privacy and data security.

Deepseek has said that it stores user information on servers in China, which could be a point of conflict in its adoption of the United States.

However, some investors believe that American technological giants will be pounced in Deepseek’s advances and that cheaper services are intended to increase technology adoption, which could raise chips demand.

“Depseek search and found a more efficient processing model for AI? Maybe, but can you count on the headlines to adopt any new technique found,” said Mark Malek, Siebertnxt investments director.

“(This) would only make the opportunity to be bigger in the future.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a union feed).


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