Reported 2 days ago
Wall Street is grappling with the implications of the Chinese AI startup DeepSeek's announcement of a low-cost generative AI model, R1, which could challenge dominant American players like OpenAI. Analysts express concern over the potential overinvestment by U.S. firms in AI infrastructure, especially after DeepSeek's V3 model was trained at a fraction of the cost of competing models. This news has caused major US AI stocks to plummet, with many questioning the sustainability of current AI spending.
Source: YAHOO