DeepSeek: Revolutionizing AI and Data-Driven Solutions

DeepSeek: Revolutionizing AI and Data-Driven Solutions

*What is DeepSeek?

DeepSeek is a cutting-edge technology company specializing in AI-driven solutions and data analytics. It helps businesses harness the power of data to make smarter decisions, automate processes, and gain a competitive edge

DeepSeek crashes the AI Party: Story Break, Change or Shift?

Harshvardhan Jha I am going to start this post with a confession that my knowledge of the architecture and mechanics of AI are pedestrian and that there will be things that I don't get right in this post. That said, DeepSeek's abrupt entry into the AI conversation has the potential to change the AI narrative, and as it does, it may also change the storylines for the many companies that have spent the last two years benefiting from the AI hype. I first posted about AI in the context of valuing Nvidia, in June 2023, when there was still uncertainty about whether AI had legs. A little over a year later, in September 2024, that question about AI seemed to have been answered in the affirmative, for most investors, and I posted again after Nvidia had a disappointing earnings report, arguing that it reflected a healthy scaling down of expectations. As talk of AI disrupting jobs and careers also picked up, I also posted a piece on the threat that AI poses for all of us, with its capacity to do our jobs, at low or no cost, and what I saw as the edges I could use to keep my bot at bay. For those of you who have been tracking the market, the AI segment in the market has held its own since September, but even before the last weekend, there were signs that investors were sobering up on not only how big the payoff to AI would be, but how long they would have to wait to get there. 

AI Boom and Market Cap Surge: Who Benefited the Most?

Since the companies involved in building AI infrastructure are the ones most tangibly (and immediately) benefiting from the AI boom, they have also seen the biggest boost in market capitalization as the AI story heated up.

AI’s Impact on Market Capitalization

In the graph, I have highlighted a subset of high-profile companies that were part of the AI market euphoria and examined the consequent increase in their market capitalization. Using the introduction of ChatGPT on November 30, 2022, as the starting point for AI’s rise in public consciousness and financial markets, the returns in 2023 and 2024 serve as a rough measure of how much AI has benefited these companies.

Notably, the biggest percentage winner in this group was Palantir, which surged 1285% in market value over the last two years. However, the biggest absolute winner was Nvidia, which added almost $3 trillion in value during 2023 and 2024.

Investments in AI Architecture

The surge in AI investments was driven by expectations that companies investing in AI infrastructure would eventually profit from developing and selling AI-powered products and services. Since AI development requires immense upfront investment in computing power and access to vast datasets, the biggest investors in AI infrastructure have been big tech companies.

Big Tech’s Role in AI Growth

By 2024, Microsoft and Meta emerged as the largest customers for Nvidia’s AI chips, fueling their own AI ambitions. To analyze the financial impact, I have also examined the Mag Seven (excluding Nvidia) to evaluate their market returns in 2023 and 2024.

With AI continuing to reshape industries, the question remains: Will these companies maintain their dominance, or will new players disrupt the AI landscape?

DeepSeek: The Open-Source Glass Box Revolutionizing Transparency and Collaborations 

In a world where technology often feels like a black box—opaque, mysterious, and controlled by a select few—DeepSeek emerges as a breath of fresh air. Imagine a glass box: everything inside is visible, transparent, and open for exploration. You can see how it works, who benefits from it, and even participate in shaping its future. This is the essence of DeepSeek, an open-source platform that is redefining transparency, collaboration, and innovation in the tech industry

DeepSeek: A Platform for Everyone

DeepSeek’s open-source philosophy is a testament to its belief that technology should be accessible, transparent, and empowering for all. By opening its codebase to the world, DeepSeek is breaking down barriers, fostering innovation, and building a future where technology serves the many, not the few.

DeepSeek: Free to Use, Open to All

In a world where many technology platforms come with hidden costs, restrictive licenses, or complex pricing models, DeepSeek stands apart by being completely free to use. This commitment to accessibility is at the heart of DeepSeek’s mission to democratize technology and make it available to everyone, regardless of their background or resources.