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DeepSeek's 'Sputnik moment' prompts investors to sell big AI players

Economic Times · 4m

Investors reacted negatively to the launch of DeepSeek's low-cost AI model, questioning Western dominance in the AI sector. Technology stocks, including Nvidia, Oracle, and Palantir, experienced significant declines due to concerns about sustainable AI investment. DeepSeek's ability to offer a cheaper AI alternative has raised doubts over the long-term financial strategies of major tech players. While details remain unclear, the shift suggests reduced training costs could lower AI access costs, impacting market valuations significantly.