Experts believe that DeepSeek could become the "Temu" of artificial intelligence.
Wedbush experts indicate that DeepSeek is not being truthful about the development process of its language model and assert that the sector in the United States will maintain its leading position.
The arrival of DeepSeek has had a significant impact on the financial market, with Nvidia experiencing a reduction of $600 billion in its valuation in a single day, the largest drop in U.S. history for a company in one day. Despite this event, analysts from Wedbush believe that while DeepSeek is impressive, it does not represent a threat that could shake the entire U.S. tech ecosystem.
In an analysis, experts point out that claims about the development costs of DeepSeek's free model could be misleading. Last December, DeepSeek presented a language model that, according to them, was created in just two months with an investment of approximately $5.6 million. This model operates on low-end Nvidia chips, which has led to a decline in the value of several tech companies, especially Nvidia. However, Wedbush suggests that investor concerns were more about how DeepSeek achieved this than about the capabilities of the model itself.
Analysts compare the situation to a school episode where a child impresses the audience with an exceptional project that turns out to be the work of their parents rather than an individual effort. Wedbush questions the veracity of DeepSeek's claims, suggesting that if they truly managed to create their model on a $6 million budget without using advanced Nvidia chips, it would be difficult to understand why giants like Microsoft and Meta are investing $80 million and $65 million, respectively, in capital expenditures.
Despite the controversy surrounding DeepSeek, the titans of artificial intelligence continue with their investment plans, projecting a spending of $2 trillion in this area. Companies such as Nvidia, Microsoft, Google, Amazon, Palantir, ServiceNow, Salesforce, Oracle, and TSMC are among those making these investments. According to Wedbush, while language models are expected to become more affordable and marketable over time, the true value lies in the data, its applicability, algorithms, and the storage of artificial intelligence. In conclusion, while DeepSeek has created a remarkable model, Wedbush analysts argue that this small Chinese company will not be able to destabilize the U.S. tech ecosystem.