When talking about technology, pundits often use the word “disruptive” as a compliment. In the case of DeepSeek, a “large language model” that is now challenging ChatGPT for AI supremacy, the term carries a mixed message.
Financial news about the Chinese LLM delivered a blow to tech stocks for a few reasons. First, the program appears to require less computer processing power than its competitors. Companies like Nvidia had seen their stock prices soar in recent months, because the conventional wisdom said that fueling the AI revolution would require lots and lots of specialized chips like the one the company manufactures. Such stocks tumbled when performance data about DeepSeek was published.
It is also being offered — for now at least — as a less expensive option for users. That could contribute to driving down stock prices of companies like Meta and Alphabet, who are counting on financial returns for ...
