The whole AI kerfuffle is about DeepSeek figuring out better algorithms, that train data much cheaper and quicker. It's also open source, the whole world including silicon valley has looked at their papers now. Meta wants to see how they can incorporate this new AI workflow. Wake up call to American tech that has become bloated,inefficient and being hyped and pumped to silly valuations. Consumers are always going to switch to the cheapest and best. DeepSeek being open source means it can be downloaded and modified on a laptop with your own weights and parameters. It doesn't coast $4 plus per token but closer to 10cents. Need less time,less GPUs, less energy. Every prompt typed by a user for the fun trying out of openai, cost openai money (when they were not for profit).
Meanwhile back to AXE, it's now in a better place when the next arms race is Quantum chips and no longer AI chips. Because the AI game has shifted more to software that better optimises, better calculates, produces better data output. It's no longer a case of pile on the GPUs and hope it's better. Also good for AXE that they haven't avoided working with Chinese fabs for the quantum TMR sensors. In the end, the economics of having to sell to consumers will decide and in the semiconductor industry this is even more the case than in openai(now closed and inefficient) large language models that are still looking for use cases and consumers. 500 billion dollars for AI? Money that they dont have (according to Elon), and now can't justify. Let's be grateful for not getting sucked into that hopeless bubble.
AXE Price at posting:
40.5¢ Sentiment: None Disclosure: Held
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