Why a great technology might have a much bigger problem than just costs when it comes to Deepseek’s artificial intelligence model

admin6 days ago

0 0 4 minutes read

The Chinese artificial intelligence company (AI) Deepseek swinging the world of technology last month when she said his Ai model was the same with top -notch northern America models, despite costing a fraction of the price. He asked questions about whether the consumption of AI became exaggerated, as many technological companies plan to spend tens of billions of dollars on the construction of their AI capabilities.

But the biggest concern may not necessarily be associated with the costs for these technological companies. The key question is whether they will pay off, because it is by no means security. And Deepseek’s AI model may be easier for other companies to compensate for and competition to reinforce.

There are many technological companies working on AI models of the following genes, and they seem to have similar options (eg, helping answers to the usual inquiries, draft messages, creating pictures, etc.). Whether you are using Chatgpt, Microsoft (NASDAQ: MSFT)Co-pilot, AlphabetGemini, or other chatbot, your experience cannot be drastically distinguished from one chatbot to another. And since the Deepseek Ai model is an open source, other technological companies are easy to build from it and make their own models, effectively giving them a great start instead of having to start on their own.

Even if users prefer certain chatbots, this preference may not create a strong enough competitive advantage for a technological company behind it. And if this is not the case, then it raises all the important question whether the consumption is justified, especially if the late crowds may not be so far behind.

AI stock They have been hot shopping in the last few years, but these are investments that can be risky. Although investors can tolerate high consumption for now, they will also expect that there will be a payment in the future. And if these AI -related investments do not result in a strong sales growth in the way, it could make supplies vulnerable to a sale.

Take Microsoft’s Copilot for example. Sales power Executive director Marc Benioff said Microsoft disappointed his customers. He compared Copilot to “Clippy” Assistant Microsoft in the 90s and called it simply the latest iteration of Clippy.

Microsoft sales are not removed, and although it offers Copilot as a subscription, he recently added his Chatbot to his Microsoft 365 subscription, which includes his popular office software like Word, Outlook and Excel. After that, it also increased the price. This could be a sign that perhaps the demand for a co -pilot as an independent subscription was not significant. The packaging along with the Microsoft 365 can help increase the use of chatbot.

For a company like Microsoft, which has invested in AI, the pressure is to prove that it is worth the effort. The company says his AI business now generates an annual rate of $ 13 billion, but this is quite modest for a company that generates more than $ 260 billion throughout the year. There are still ways to prove that his investments in AI will pay off. This fiscal year (ends in June), Microsoft consumes $ 80 billion to AI data centers.

There are a lot of hype with AI these days, and it can be difficult to know what the right job is and what is not. Microsoft and Alphabet can still be a good long -term purchase and can be well paid to their AI strategy. After all, they have money ships that can enable them to experiment on their way.

In the short term, however, their supplies can experience some volatility, depending on how well they are able to perform their AI strategies and how much revenue they bring. For other companies without strong companies, the risk can even be even higher.

Although it may be tempting to buy shares for your AI potential, investors should also consider the risk and uncertainty involved in this, as this could be another difficult year for technology if reality does not coincide with expectations.

Before you buy stock in Microsoft, consider this:

AND Motley Fool Stock Advisor A team of analysts has just identified what they believe they are 10 of the best stocks That investors could buy now … and Microsoft was not one of them. 10 stocks that made the cut could bring a monster return in the coming years.

Consider when Nvidia I made this list on April 15. 2005. … If you invested $ 1,000 at the time of our recommendation, You would have $ 850,946!*

It’s worth noting now Stock advisorThe total average refund is 959%of the market of the market compared to 178% For S & P 500. Don’t miss the latest top 10 list.

Find out more »

*Stock Advisor returns from February 7 2025

Suzanne Frey, Executive Director of Alphabeta, is a member of the Board of Directors Motley Fool. David Jagieli There is no position in any of the shares mentioned. Motley Fool has positions and recommends alphabet, Microsoft and Salesforce. Motley Fool recommends the following options: Long January 2026. $ 395 calls Microsoft and short January 2026. $ 405 calls to microsoft. Motley Fool has disclosure rules.

Why a great technology might have a much bigger problem than just costs when it comes to Deepseek’s artificial intelligence model originally published by Motley Fool

Source link