Remember that deep seek crash? You're listening to Motley Fool Money.

I'm Ricky Mulvey, joined today by Bill Barker. Bill, good to see you. Thanks for being here.

Thanks for having me. So I want to get back to this deep seek story

because this $1 trillion market crash seems to be not really talked about anymore.

Fewer than two weeks ago, the market panicked when this large language model that was released

by a Chinese hedge fund went into the open world. The company claimed that it has trained its model for less

than $6 million. And this revelation created basically a $1 trillion market wipeout,

hitting companies like Taiwan Semiconductor and Nvidia. Now we're a little under two weeks away.

I think it's time to do a retrospective and look back on this. Bill, was this an

overreaction, an underreaction, or did we find the porridge just right on this reaction?

Well, I think it was a large reaction fueled by not enough information and too many people

trading as if they understood the story

in the moment, which was impossible given the parts of the story that were left out and the

inadequacy and unpreparedness for most people to take in the details of what is going on

in AI models.

I think that there are parts of the story which entirely deserved a large and significant

stock reaction and parts which did not, and were two weeks away, and those things have sorted

each other out far better than they did in the moment.

But I don't think that we're exactly finished with this story.

Yeah, I think one of my favorite reactions was from OpenAI, who was upset that possibly Deepseek used some of its technology to train its model.

And they didn't do it with Open AI's permission.

They were very upset about that.

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