Well, welcome to the tech meme right home for Monday, January 27th, 2025. I'm Brian McCullough today.

It's one of those days where there's only one story. Maybe you saw that tech stocks got obliterated today.

I'm here to tell you why. It's solely because of DeepSeek and Chinese AI tech generally.

How this tech is making people think twice about the AI boom, what Deep Seek did that is different,

and how this could affect all of Silicon Valley.

Here's what you miss today in the world of tech.

Here's why the stock market is having a bit of a crash this morning.

Nvidia down more than 8%.

Meta and Microsoft both down ASML down almost 10%.

Japanese chip companies filing.

Crypto also falling.

It's all because of DeepSeek.

We spoke about DeepSeek last month with Simon Willison.

To sum it up, most succinctly, Deepseek was apparently able to train an AI model

at 3% of the cost of cutting-edge models from the likes of OpenAI.

So why do you need to buy 100,000 H-100s from Nvidia when maybe you only need 3,000?

See, a lot of the eye-popping Kappex spending from the likes of every tech player in the world was predicated on the idea of scale.

The only way to get smarter AI was to throw more and more compute at it,

which meant more and more GPUs and more data centers. I mean, this was the whole premise behind

the Stargate announcement. But what this is making people think, what if that is no longer true?

Then all of this spending could be pulled back all at once and thus crash. But not only that,

DeepSeek has jumped to the top

...