GS: "DeepSeek Monday" more about a rotation in the AI trade, rather than outright negative
(i) border security (Canada, Colombia, Mexico); (ii) geopolitics (steel & aluminum); (iii) fairness (reciprocal tariffs & currency manipulation). China is the only country to be tariffed - and will get tariffed more - as it hits all of these...
‼️ 🚨 BREAKING: Elon Musk-led group makes $97.4B bid for control of OpenAI. 👀
A consortium of investors led by billionaire Elon Musk is offering $97.4 billion to buy the nonprofit that controls artificial intelligence startup OpenAI, the Wall Street Journal reported on Monday. Musk's attorney, Marc Toberoff, said he submitted the bid to OpenAI’s board on Monday, according to the report. "It's time for OpenAI to return to the open-source, safety-focused force for good it once was," the WSJ cited Musk as saying in a statement provided by Toberoff. "We will make sure that happens." SOURCE: REUTERS, WSJ
Jevons' Paradox in action: The initial response to the "DeepFreak" suggests companies are spending more, not less.
Cloud Capex is projected to grow 40% in 2025, according to @MeliusResearch Source: Holger Zschaepitz @Schuldensuehner
Is AI hype a bubble or the next big thing?
Magnificent 7 stocks are 30 TIMES higher than where they were 10 years ago, exceeding gains of other historical manias. The Nasdaq 100 rose 12x in 10 years before the 2000 Dot-Com Bubble popped. The Nikkei 225 rose 10x in a decade during the Japanese bubble of the 1980s. Furthermore, Gold saw a 15x increase in price in the 1970s before its peak. Lastly, Nifty Fifty stock prices rose 5x in the 1960s before the bull market ended in 1969. Will AI live up to the historically high expectations? Source: The Kobeissi Letter
BREAKING: ChatGPT is down worldwide with millions of users unable to access the platform.
Source: The Kobeissi Letter
OpenAI is in early talks to raise a large funding round at a $340 billion valuation,
more than doubling what it was worth in October, according to the Wall Street Journal, citing unnamed people familiar with the matter.
Europe doesn't have much AI companies but they aim to lead on AI regulations...
Source: European Commission
⚡ The Jevons paradox
🚨 In the wake of DeepSeek turning the entire industry on its head — and wiping nearly $600 billion off of the market cap of Nvidia in a single day — one new phrase has become table stakes for anyone wading into the DeepSeek discourse: Jevons Paradox, with traffic to its associated Wikipedia page soaring this week. 👉 Per that very Wikipedia page: “...the Jevons paradox occurs when technological advancements make a resource more efficient to use (thereby reducing the amount needed for a single application), however, as the cost of using the resource drops, overall demand increases causing total resource consumption to rise.” 👉 The original example posited by Mr. William Stanley Jevons, summarized nicely by Axios, was coal. Progress in steam engines, which enabled them to use less coal, didn’t lead to a drop in coal demand — it led to a huge rise. Though a bit of an oversimplification, that is essentially the crux of the current debate in AI: DeepSeek reportedly achieved something for a lot less money and resources than US competitors like OpenAI and Meta used. That could be interpreted in two ways: • We will therefore need fewer high-tech chips like the ones Nvidia makes, and fewer energy plants to power them (which is why power and datacenter stocks got hammered this week); • Or, and this is where the Jevons Paradox comes in, WE WILL WANT EVEN MORE 💪 The market seemed to follow the first school of thought on Monday 🐻 , but came around to the second by Tuesday 🐮 , with chip analysts and tech heavyweights, most notably Microsoft’s CEO Satya Nadella, citing the paradox as proof that AI use will “skyrocket.” 🚀 🚀 🚀 Source: Chartr
