Chinese startup DeepSeek shakes up global tech stocks

"The news of DeepSeek, a Chinese startup that has created a large language model (LLM) with much smaller technological resources than the industry leaders of large US corporations, has shaken global stock markets.

 

European stock indexes fell, led by technology companies - ASML fell 8.4%, ASM International - 11.6%.

 

The Stoxx 600 technology sub-index fell 4.3%.

 

"The Chinese artificial intelligence (AI) startup's new model is cost-effective and operates on lower-capacity chips. This raises questions about the high valuations of leading AI companies such as Nvidia and the investment soundness of the entire AI supply chain," Saxo Bank analysts explain.

 

US stock futures also show a negative trend before the opening of trading. The abundant supply of technology companies Nasdaq 100 futures fell 3.13%."

 

AI is needed in so many areas that cheaper AI is good news for tech stocks. Anyone selling them now is missing out. This is bad news for Biden's attempts to block China's economy. Biden is used to bad news for him by now.