Will DeepSeek Sink The U.S. Economy?
There was a massive sell-off yesterday as AI jitters hit the biggest names in tech. The culprit, DeepSeek. Economist Dr Matt Will joins Tony Katz Today to discuss if we should be concerned.
DeepSeek is a company that has a technology that uses a packaging technique. Packaging is not that we’re not talking like bubble wrap or boxes. It allows this cheap chip, this inexpensive Chinese chip, any, any chip to do just as much work as the NVIDIA chip or the Taiwan Semiconductor chip. It allows them to do the exact same amount of work without the energy usage or without having to spend a fortune on these expensive NVIDIA. That you can use a cheap old chip and get the same result this is an amazing technology that they’ve developed and it’s a game changer for the entire AI industry.
So here is this technology again… It’s China.
Source: Dragos Condrea / Getty
We have to ban TikTok and everyone’s like, ohh, check out. DeepSeek, never mind its usage in the United States, which of course would be a question. The same thing about who controls 5G, who controls AI, how it breaks down a little bit further about how this affects NVIDIA, and then play it into the overall thoughts about the US economy?
Seven AI companies dominated the stock market, 493 companies as a whole, lost money. I did the numbers just this weekend. Last year those same seven companies dominated 54% of the gain in the S&P, 540% of the companies in the S&P lost money and NVIDIA is ahead of this group. The whole world is revolved around AI. We are dependent on one company. NVIDIA and Meta, you name it, Google, they’re all dependent on NVIDIA. So, as NVIDIA goes, so goes the US economy and the US stock market.
What does this mean for the U.S. economy as a whole? Listen to the discussion in full here:
Tony’s discussion of DeepSeek on Tony Katz and the Morning News:
Archived episodes here:
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