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In depth has triggered a world technological stock sale that Cost Nvidia 600 billion dollars in market value. But JPMorgan (Jpm+ 0.92%) Chase says that the flea manufacturer AI is required to benefit from the Chinese startup.
The Artificial Intelligence Startup based on Hangzhou Sent shock waves both to Silicon Valley and Wall Street Last month after raising questions about Big Tech expenses on the infrastructure of AI.
But despite the stock market rally based on a-perdant 1 billion of dollars of value, analysts of research in shares in US JPMorgan shares declared in a new report that Deepseek will probably have a positive impact on companies such as Amazon (Amzn+ 0.45%), Meta (Meta+ 1.61%), and Google (Googl-0.51%) Parent alphabet, as well as the leader of the Nvidia maquariot (Nvda+ 1.20%).
The Chinese startup launched its open source Deepseek-R1 reasoning models in January that performed equally with similar models D’OPENAI and Anthropic, while its open source Deepseek-V3 model published in December also played competitively with AI models of companies based in the United States-for much less money and less advanced chips.
According to the technical document V3, the model cost $ 5.6 million to train and develop On a little less than 2,050 of the H800 chips with reduced capacity of Nvidia. American companies, on the other hand, are spend billions on tens of thousands Nvidia’s most powerful H100 chips, which are not allowed to be sold to China under the controls of American exports.
Deepseek demonstration of AI profitability and innovation will lead to a “high demand” of higher performance graphic processing units, or GPUJPMorgan analysts announced on Wednesday on Wednesday. “Consequently, Nvidia’s leadership in advanced fleas” should allow them to unlock new use cases “. Other flea companies such as Broadcom (Avo-0.24%), Marvell (MRVL+ 0.26%), and Micron (Mu+ 2.54%) are also likely to benefit from Deepseek, according to JPMorgan.
Intel pioneer chip (Intruder-0.94%), however, should lose Deepseek, said analysts because the demand for his Central treatment units, or CPUwill decrease as in the middle of the passage to accelerated computers.
JPMorgan analysts also said that they “believe that the wider internet ecosystem should benefit” following the progress of the open source model demonstrated by Deepseek and the Chinese Alibaba (Baba+ 1.80%). Improving profitability “should accelerate” the development and adoption of AI, leading to more consumption, said analysts, adding that they “expect strong capital expenses” by Amazon, Alphabet and Meta continue in the medium term.
Meta should benefit from an increase in the adoption of the open source model because it builds its model of the new generation of Open-Source 4, said JPMorgan. During the call for results of the fourth quarter of the company, the director general of Meta Mark Zuckerberg, who praise the oer-source ai Models as “good for the world,” said Deepseek breakthrough, the need for an open source global standard led by the United States
Amazon, who Introduced Deepseek-R1 in its cloud platformswill probably benefit from the supply of Open Source model options, analysts said, as this will increase the demand and use of AI, which stimulates monetization.
Meanwhile Alphabet is also likely to benefit from the Lower Training and Inferencing Costs Demonstrated by Deepseek, Jpmorgan Said, Because it will be able to accelerate development and adoption of Ai Agents, as well as Other Ai Apps Such as Google’s Notebook and Gemini Advanced with Deep Research.
Google made its “most competent” AI model on Wednesday, Gemini 2.0, Available for everyone. During its unveiling in December, Google’s general manager Sundar Pichai said that Gemini 2.o will allow us to build new AI agents who bring us closer to our vision of a universal assistant. “