AI snapback
One month on from the DeepSeek selloff, tech giants are still allocating billions to artificial intelligence.
Even as it was happening, January's seismic global market correction triggered by DeepSeek felt like it might have been a bit of an overreaction.
The collapse, which wiped USD1 trillion ($1.57 trillion) from tech markets, was on the surface a belated response to the release of the Chinese AI lab’s latest models, which purported to match the power of bleeding edge American tech at a fraction of the training and inference cost.
Of course, what seemed like China's technical and geopolitical Bradbury moment was only ever part of the story. The correction was, in part, an overdue reality check.
The market was already overheated, with the biggest US tech stocks trading at sky-high valuations even as they pumped heretical amounts of money into infrastructure buildouts for AI.
