Late last week, China’s DeepSeek released an upgrade to its AI reasoning model that performed in line with OpenAI’s ChatGPT in third-party tests. In some cases, it even outperformed!
According to DeepSeek, its language model only cost about $6 million to develop — far less than some of its American competitors.
That slammed the proverbial brakes on the strong market run to start 2025.
The sell-off was concentrated in piping-hot AI-related stocks, with the biggest “Magnificent Seven” tech stocks losing more than $1 trillion of their combined market cap by Monday’s close.
But what if I told you there was more (way more) to it than that?
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