AI investors were caught off guard this week on news of China’s ChapGPT rival “DeepSeek”. It’s alleged DeepSeek was developed far more cost-effectively (millions vs billions) than OpenAI’s ChatGPT (and similar large language models). If true (and we don’t know) – this raises questions about the sustainability of current U.S. AI infrastructure investments – forecast to top $1 Trillion next year. All of a sudden – valuations for these AI stocks are being questioned.
