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Viewsroom

DeepSeek scrambles AI development reasoning

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 30 January 2025

⏱️ 24 minutes

🧾️ Download transcript

Summary

Breakthrough cost-efficiency claims from the made-in-China model stunned investors expecting a spending splurge, eroding $600 bln of chipmaker Nvidia’s value. In this week’s Viewsroom podcast, Breakingviews columnists debate what the advance means for machine-learning hype. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:03.2

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0:22.2

Indeed.com slash SPANUK. Terms and conditions apply. The views expressed on this podcast are those of the

0:31.1

participants, not of Rogers News. Technology shares around the world slid on Monday, a surging popularity of a Chinese discount

0:44.0

artificial intelligence model ruffled feathers.

0:50.3

Startup, Deepseek, has rolled out a free assistant, it says, uses lower-cost chips and less data.

0:56.7

That seemingly challenges a widespread bet in financial markets that AI will drive demand along

1:02.3

a supply chain from chipmaker's two data centers.

1:09.4

A $589 billion valuation hit to the world's leading Chip Goliath, panic over the competitiveness

1:15.9

of once seemingly insurmountable US champions, and sudden existential questions about trillions

1:22.5

of dollars of forecast spending.

1:24.7

A market rum wild on fervor for artificial intelligence has been colossally wrong-footed

1:29.3

by the release of DeepSeek's R1 reasoning model.

1:32.3

Developed under the ages of a Chinese hedge fund, claiming to have found novel ways to train

1:36.5

AI at far lower costs, the technology's sophistication closes substantial ground with American

1:42.2

labs, despite trade sanctions aimed at limiting China's

1:45.8

advance. What this means for the data center, energy, and chip firms banking on a rising

1:50.6

tide of spending, the rapidly escalating trade war, and AI itself is the focus of this week's

...

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