“If there truly has been a breakthrough in the cost to train models from $ 100 million+ to this alleged $6 million number, this is actually very positive for productivity and AI end users, as cost is obviously much lower meaning lower cost of access,” Jon Withaar, a senior portfolio manager at Pictet Asset Management, told Reuters.
That’s a good thing, assuming AI is a good thing in the first place. But it’s a less good option for the big developers in the space. AI stocks are taking a battering today as investors evaluate the achievement. They want value for money, and if DeepSeek can get for $1 what other companies spend a sawbuck on, they’ll want to invest in that.
Ideological AI
It is worth mentioning one other limitation of the system. As it is a Chinese model, it is benchmarked by the Chinese Internet regulator who ensures the genAI responses “embody core socialist values.”
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