DeepSeek announces R1 model similar to O1, causing tech stocks to drop

From Investing.com: 2025-02-03 06:12:00

DeepSeek, a Chinese AI company, announced the R1 model, causing tech stocks to drop. R1 is similar to O1 from Open AI, costing only $6M to make. However, reports suggest DeepSeek used high-end chips. The US innovation drives these advancements, benefiting AI applications. Agentic AI, like copilots, can revolutionize various industries. Open-source AI models are gaining ground, posing a challenge to closed-source ones. While AI applications flourish, compute hardware and power generation face challenges. Tech giants are investing more in hardware despite a strong 2024. This announcement has far-reaching implications for the tech industry.



Read more at Investing.com: DeepSeek and the Impact on the AI Value Chain