News

We provide the latest news
from the world of economics and finance

Back
28 January
The stock market ‘is telling us that cheap, open-source AI is a good thing’ after DeepSeek rout

Market Extra

Investors aren’t ignoring the upsides of cheaper AI models despite Monday’s DeepSeek-inspired stock-market panic

DeepSeek-inspired panic sank U.S. stocks to start the week. Photo: pedro pardo/Agence France-Presse/Getty Images

So it turns out that the prospect of cheaper artificial intelligence that doesn’t require a wholesale reordering of the energy grid and the depletion of water and other natural resources might be a good thing for the stock market.

Or at least it’s a potential positive for shares of companies other than those that have seen a monster rally over the past two years based on massive and ever-growing spending on expensive semiconductors and other infrastructure.

William Watts is MarketWatch markets editor. In addition to managing markets coverage, he writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. During his time at MarketWatch, Watts has served in key roles in the Frankfurt, London, New York and Washington, D.C., newsrooms.

х
Risk warning: Trading on financial markets carries risks. The value of the investments can both increase and decrease and the investors may lose all their investment capital. In case of a leveraged product, the loss may be more than the initial capital invested. Detailed information on risks associated with trading on financial markets can be found in General Terms and Conditions for the Provision of Investment Services.
Contact usCollapse