DeepSeek: Hoax or AI Crash?

DeepSeek, a Chinese company, just came out with an AI model that's just as good as the ones in the U.S... BUT cost one-tenth as much to train and didn't need any advanced NVIDIA chips to do it. Some say it's a hoax. Some say it's the beginning of an AI crash. In this video, I'm going to explain in simple terms what happened, why some investors are so worried but others are so skeptical, and what the potential investment implications are.

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[FundamentalsofFinance]

If you want to learn more about investing from a CFA Charterholder currently in the industry, join our

[aathyBenson]

Biggest lesson i've learnt in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

[adamalford-xp]

Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

[nathanpeterson]

Oh my goodness thank you for actually looking into and analyzing DeepSeek for what was. Mainstream media was too busy sensationalizing this as doom and got pretty carried away on the topic. Between this and the MSTY video (which was spot on, by the way) am really impressed with this channel so far. Please keep the content coming. It's brimming with tact and intelligence, lol

[toskr-rt]

Denial is the most predictable of all human responses

[waichui]

This video is very helpful. You talk about the costs and expenses and issues from the consumer's point of view. DeepSeek just destroys the gigantic profit projection of silicon valley. The world will certainly use a lot more AI. Economics 101 tells you that when price drops, demand goes up.

The gigantic profit that OpenAI and other silicon valley company hope to make is gone. They cannot charge high price for AI.

If you do not need that much processing power, Nvidia is not going to make gigantic profit either. And competition will increase.

[bobparkhurst]

Huawei's 'GPU' doesn't compare to Nvidia, unless it's about inference where it reportedly matches, but is far more efficient.

[milycome]

Hope Deep Seek is Not a Hoax and is for Real. Why ?? Screw the Big, Greedy, Big Tech Opportunists.

[RAri-rcto]

I’ve had to throw in $50k to meet margin maintenance this week. Considered throwing in the towel…I then show up at my prosthetics office and the magazine on top of the stack talked about AI in their field . Needless to say, it was very interesting stuff all around. I will hang in there.

[caribbeanchild]

A U.S. finance guy talking a bout DeepSeek. I can guess how this will go.

[bak-wwsz]

Thanks for sharing your insights! It's true that the H800 is quite close in performance to the H100, with only minor differences in certain benchmarks. As for the rumors about China obtaining H100 chips, reports suggest that despite U.S. export bans, some high-end GPUs have made their way into China through various means.

Regarding AI development, it's well-known that many AI models, including those developed in China, have been influenced by publicly available information, including data from platforms like ChatGPT.

Your point about AI being a bubble waiting to burst seems shortsighted to me. AI technology has become deeply integrated into various aspects of our lives and industries, and it's only going to grow from here.

[af]

I am not sceptical.... Your title misleading

[purpleghst]

Fun fact: DeepSeek cannot identify who Xi Xingping is…lol

[realdemocracy]

You did not answer your question, though!

[OptionRocket]

The H800 is not a crappy chip. It’s based on the H100 for the China market and is only about 10-20% slower.

[GregorF-HansS]

Great video; It does appear that DeepSeek (and perhaps many other players that we don't even know of yet) have the potential of cutting into NVDA's future earnings.

[bonanzatime]

Considering the Chinese track record on 'telling the truth'.😄