Investing.com– Chinese Artificial Intelligence Company has launched a number of new open code models over the last week, claiming that the Rival’s offers such as Openi for a fraction of their price.
The launch and subsequent testing of the company’s leading model – Deepseek R1 – raised questions about how justified the recent capital expenditure to build artificial intelligence infrastructure, which ran down hundreds of billions of dollars among major US companies.
Bernstein analysts noted that the new models were impressive, in their ability to compete with the leading models of Openi and Meta (Nasdaq :), while claiming to use a fraction of investment and infrastructure of chips used by their competitors.
They rejected the claims that Deepseek built an opening for $ 5 million and that a wider market panic around the model makes it overblown.
“If we admit that Deepseek may have reduced the cost of achieving the equivalent performance of the model for, say, 10x, we also notice that current models of the model costs are already increasing for so much every year (the infamous” Skalantine Laws … “) that cannot continue forever,” Written by Bernstein analysts in a note.
They noticed that artificial intelligence industry needed innovations such as Deepseek to continue to progress, in the sense that more performance could be pulled out of the existing hardware.
The brokerage house noted that the need for increased artificial intelligence infrastructure still exists, believing that all new computer capacities are likely to absorb increased demand for artificial intelligence.
Bernstein recommended that you not engage in “Scenarija of Judgment Day that are currently taking place in Twitter” and that the brokerage house continued to recommend Nvidia Corporation (NAMDAQ 🙂 and BroadCom Inc (NAMDAQ 🙂 (both rated as surpasses) for their prospects for their prospects artificial intelligence.
The Nvidia market’s favorite fell sharply on Friday and it seemed ready to increase losses on Monday due to concern that innovation such as Deepsek would require less investment in AI infrastructure.
Fans on Wall Street also fell sharply on Monday, with losses aimed at technological shares on suspicion of future investment in artificial intelligence.
