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Feb 2025
26m 41s

How DeepSeek changed the market's mind

NPR
About this episode
On Monday, the stock market went into a tizzy over a new AI model from Chinese company DeepSeek. It seemed to be just as powerful as many of its American competitors, but its makers claimed to have made it far more cheaply, using far less computing power than similar AI apps like ChatGPT, Claude, or Gemini. In one day, hundreds of billions of dollars were wiped off the valuations of companies related to AI.

This week, investors seemed suddenly to change their minds about what our AI future would look like and which companies will (or won't) profit from it. Will we really need all those high-end computer chips, after all? What about power plants to provide electricity for all the energy-hungry AI data centers?

On today's show – how DeepSeek might have changed the economics of artificial intelligence forever.

This episode was produced by Willa Rubin with an assist from James Sneed. It was edited by Keith Romer and engineered by Neil Tevault. Research help from Sierra Juarez. Alex Goldmark is Planet Money's executive producer.

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