The Globe and Mail reports in its Tuesday edition that a day of financial unrest erased over $1-trillion from global tech stocks, triggered by the launch of an inexpensive artificial intelligence app called DeepSeek from a small Chinese start-up. The Globe's Tim Shufelt writes that this breakthrough may make AI more accessible, benefiting companies beyond the elite tech giants. Yardeni Research strategist Ed Yardeni noted that the best way to invest in AI could be through the S&P 493 companies that will enhance productivity and cut costs with this new technology.
The stock market reacted negatively to DeepSeek, viewing it as a challenge to American AI dominance, which has driven stock prices up recently. Wellington-Altus manager Chris Stuchberry noted, "We've been wondering who else will emerge," adding that it is no surprise to see China entering the scene. DeepSeek was created in two months for only $5.6-million (U.S.), likely alarming Silicon Valley executives who have invested hundreds of millions in their own large language models. Last week, Meta boss Mark Zuckerberg announced a $60-billion (U.S.) to $65-billion (U.S.) investment in AI and plans for a data centre covering a significant part of Manhattan.
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