Big Tech rushes to adopt DeepSeek 01/31/25

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.8 • 56 Ratings

🗓️ 31 January 2025

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

Chinese startup DeepSeek sparking a sell off this week that sent Nvidia and Microsoft shares slipping downward. We look at how even as the new open-source model poses a threat to big tech, major AI companies are quickly embracing DeepSeek’s reasoning model.

Transcript

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0:00.0	This was the week. The Deep Seek roiled the markets. The Chinese AI startup caused its tech sell-off that sent Nvidia shares down 11% on the week. Microsoft down six. But despite the threat, it might represent AI companies are surprisingly embracing that open source model now.
0:15.9	Our dear Durbosa explains in today's tech check. Happy Friday, Dee.
0:20.9	Happy Friday. It's been a long one, Carl. Good morning. So there's really these dual
0:24.6	narratives going on. While Wall Street in Washington, they're shuddering at the cost of Deepseek's
0:29.3	breakthrough and its geopolitical implications. Tech is really full steam ahead on adopting
0:34.4	and promoting the model. Now, at the core of this momentum is real excitement
0:38.6	about the technological leap deep seek has made, higher performance with fewer resources.
0:43.4	It's also because it's open source. So companies see it as both adaptable and scalable,
0:47.9	making it an easy choice to integrate and build upon. Mark Zuckerberg praised its
0:52.9	advancements on Mehta's earnings call this week and said
0:56.0	that he hopes to implement those advancements into their own systems. Amazon CEO Andy Jassy last night
1:01.3	posting to X deep seek's integration with AWS and also promoting it with a casual have at it.
1:09.1	Nvidia is now offering deep seek for enterprises calling it a perfect example of test time scaling,
1:14.6	and that is an AI system that can adapt and improve its performance on the fly, making it highly useful for AI applications.
1:21.6	And on the same day, guys, that Microsoft began probing DeepSeek for improperly using OpenAI data. It also quietly made
1:29.3	deep seek available on Azure, its cloud computing platform. On last night's Apple earnings call,
1:35.1	Tim Cook paid Deepseek a compliment too, saying that its models represent innovation that
1:39.9	drives efficiency. And that guys raises the question as Apple looks for an AI partner in China,
1:45.1	could DeepSeek be it? Now, this isn't limited to just AI companies. I spoke to a founder of an
1:52.2	AI infrastructure startup base 10, Tuhin Sri Vistava. He said that he's heard from nearly two dozen
1:58.5	Fortune 100 companies this week. Not only do they want to run Deep Seek's models, but it's changed their entire view on licensing AI.
2:06.5	They're questioning the premium that they have been paying for OpenAI in Azure and Claude in AWS,
	...

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