The AI Model That Tanked the Stock Market
Odd Lots
Bloomberg
4.4 • 1.6K Ratings
🗓️ 28 January 2025
⏱️ 24 minutes
🧾️ Download transcript
Summary
On Monday, the stock market tanked, seemingly in reaction to the emergence of DeepSeek, an open source AI model developed in China. Nvidia, the semiconductor giant that has been the largest winner of the AI boom, erased $589 billion in market cap, for the biggest one-day wipeout in US stock-market history. Other chipmakers and big tech giants also swooned. So how did DeepSeek do it? Is it a big threat to the American AI giants like OpenAI and Anthropic? What does this say about export restrictions on US chips? On this special emergency session of the podcast, we spoke with Zvi Mowshowitz, an AI expert who authors the excellent Substack, Don’t Worry About the Vase. He answered all our questions and more to help understand what it means.
Read more:
AI-Fueled Stock Rally Dealt $1 Trillion Blow by Chinese Upstart
World’s Richest People Lose $108 Billion After DeepSeek Selloff
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| 1:21.9 | Tracy, the deep seek sell-off. |
| 1:24.3 | That's right. |
| 1:25.0 | It's pretty deep. |
| 1:25.9 | Has anyone made that joke yet? |
| 1:44.5 | We're in deep seek, yeah. I don't think anyone has made that joke yet. I will say, like, you know it's bad in markets when all the headlines are about standard deviations. And then, and then you know it's really bad when you see people start to say it's not a crash, it's a healthy correction. |
| 1:46.3 | Yes. That's the real cope. |
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