DeepSeek’s AI models, hailed for their cost-efficiency and ability to run on less-advanced chips, are disrupting traditional power structures and capturing attention across industries.
It is powered by the open-source DeepSeek-V3 model, which researchers believe was developed for less than US$6 million.
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Nigel Green, CEO of global financial advisory giant deVere Group, predicts significant consequences for the Nasdaq 100 and US Big Tech following the Chinese breakthrough.
“DeepSeek is going to challenge Silicon Valley’s leadership, disrupting the global tech landscape and reshaping the direction of the AI arms race,” says Green. “The launch of this innovation underscores a historic pivot in the balance of technological power.”
DeepSeek’s rapid rise has been underscored by its AI models dominating Apple’s App Store, surpassing rivals like ChatGPT. Its success is emblematic of China’s growing role as a tech innovator, undermining the US’s long-held AI supremacy.
“The balance of power is shifting,” adds Green. “China’s advances in AI are eroding the US’s ability to use economic tools like tariffs to maintain global dominance.
“Washington must recognise it can’t always dictate terms to Beijing as it once did. This new reality has far-reaching implications for investors and policymakers.”
Cybersecurity and investment opportunities
DeepSeek’s rapid development raises concerns about vulnerabilities in digital ecosystems, fuelling demand for solutions to protect sensitive data and critical infrastructure.
“Cybersecurity stocks are positioned to benefit from this development,” notes Green. “As governments and businesses adopt AI technologies, they will increasingly rely on cybersecurity providers to safeguard their operations.
“This sector is no longer just about defence; it’s a growth engine in a world defined by escalating technological rivalry.”
The rise of DeepSeek highlights the accelerating pace of global AI competition. For US Big Tech, this presents a critical challenge. Giants like Alphabet, Meta, and Apple face slowing profit growth and the emergence of formidable competitors, raising questions about their future dominance.
“Traditional tech giants are no longer guaranteed winners,” warns Green. “Investors must focus on emerging technologies, cybersecurity, and regions driving innovation. This is the clearest signal yet of where the future is heading.”
Green concludes, “The developments we are witnessing today are the first waves of a seismic change. Embrace the opportunities of this technological shift or risk being left behind.”
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