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Open-source Chinese AI models have raised questions about record investments in computing capacity
Open-source Chinese AI models have shone a spotlight on record investments in computing capacity
“DeepSeek’s and Alibaba’s success shows that AI can be done much cheaper than Silicon Valley tech companies predicted, and that the investment into expensive data centres has become irrationally exuberant,” says Shaun Rein, Shanghai-based managing director of China Market Research. Although DeepSeek's claim have been disputed by many parties, some onlookers argue innovation by these Chinese companies calls for a rethink of the billions of dollars being deployed in AI microchips and the data centres that house them. Despite Wall Street’s knee-jerk reaction, “this is positive in the long-term for AI development and data centre demand as the emergence of new competitors fosters innovation and provides more — and possibly better — options for consumers, ultimately benefiting the industry as a whole”, says JLL’s Mr Kinsey.
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