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The AI bust is here
The arrival of DeepSeek blows up delusions of AI tech wealth.
We’re not even a month into 2025, and the new Chinese AI program DeepSeek this week sparked Nvidia’s $465 billion rout, the biggest single-day drop in US stock market history. Look at it this way: today’s overheated stock market is driven by the Magnificent Seven — companies that with one exception (Tesla) have one thing in common: they’re all heavily invested in AI hype. Still,”a small team in China took a fresh look at a problem and came up with a novel approach that reduced the cost of chain-of-thought reasoning by 50x (if DeepSeek’s postings are accurate) and then published a paper fully describing their process, allowing the community to benefit from their learnings,” Zemlin said.
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