The testimony of its greatest fall of a day since 2022 after the Deepseek correction has spread much more on Monday. Potentially, this technology could change the situation and questions are asked about the enormous sums of money that traditional technological players, so-called magnificent 7, have plowed in the development of AI. We examine the implications for FX and Treasure yields if these falls are supported
The real and perceived deep threat
briefly known by more than 4% on Monday. We have not seen this kind of sale in technological actions since then, which reflects the conviction held by most investors for almost two years that the “Magnifiment 7”, like Microsoft (Nasdaq :), Alphabet (Nasdaq 🙂 And Meta (Nasdaq :), would deliver. Certain surveys on purchasing investors indicate to be “magnificent 7” for a long time as the most congested financial market trade for this period.
At the heart of this is the Chinese artificial intelligence society Deepseek. Its application climbed in popularity after publishing a free model last week. It is said that it uses less data to a fraction of the cost of its more traditional rivals. This is potentially a major challenge for operational operators, and questions are raised on the billions of dollars they have pumped to develop their own AI models.
The breakthrough could be that Deepseek can reach a advanced model without advanced equipment. The current concept is that for larger models, you need more computing power – if you want more context, you need more calculations. The often dreamed shortcut could be the use of intelligent algorithms.
Deepseek now seems to show that we can do more with the existing computing power than we thought before. In addition, Deepseek now offers its model for free. The market therefore needs price in a slower adoption rate of high performance IT and business income selling AI models. It is at a time when traditional business assessments are already very sensitive to small changes in expectations. The assessment of companies depends on their …
..
