Nvidia drops 16% as China's DeepSeek AI model sparks global tech sell-off
DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.
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Is the AI bubble collapsing yet?
Because it's high time - before the US commits billions to this nonsense for nothing.
Unfortunately, hundreds of billions have already been invested.
Not public money.
I don't give a shit if big tech monopolies lose their shirt on AI. But Trump wants to spend insane amounts of taxpayer's money on this shit. So if it should proves less expensive than it needs to be, now is the right time.
Billions have already been spent on building chip fabs which will never be profitable.
Yes, China is doing the US taxpayer a solid by giving them an opportunity to prevent losing money on AI, but I think this administration is going to find a way to send those billions to silicon valley anyway.
The chip fabs are not an issue, we will always need more chips
Fair point, though in our world of graying public/private distinction it's important to note that those companies spending hundreds of billions will want a return on their investment, whether that's voluntary or forcing the government to buy their shit at exorbitant prices.
Probably more of an AI-infrastructure-bubble collapse.
To use the old Gold Rush analogy—it’s like investors assumed the real money would be in selling pickaxes, but the miners just discovered they don’t actually need them.
