DeepSeek is now up to 50x CHEAPER than OpenAI and Anthropic for AI tokens.
DeepSeek’s massive price cuts have made its AI token costs up to 50x cheaper than OpenAI and Anthropic, reshaping enterprise AI economics. Since hashtag#AI costs scale with token usage, companies running coding agents or reasoning-heavy models can spend millions—or even billions—annually. More advanced models consume huge hidden “reasoning” tokens, dramatically increasing compute costs. This is pushing firms toward cheaper, optimized models and tools, with companies like Microsoft and Uber already feeling budget pressure. The key competitive advantage in AI may shift from having the smartest model to delivering “good enough” AI at the lowest scalable cost. Source: Bull Theory
President Trump called on AI companies to build, bring, or buy 100% of the energy needed for their data centers as part of his “Ratepayer Protection Pledge.”
Monthly tokens processed across Google surfaces: May 2024: 9.7T May 2025: ~480T May 2026: 3.2Q+ That is 7x Y/Y growth. Source: Wall St Engine
GOOGLE JUST SHOWED HOW INSANE AI DEMAND HAS GOTTEN
Monthly tokens processed across Google surfaces: May 2024: 9.7T May 2025: ~480T May 2026: 3.2Q+ That is 7x Y/Y growth. Source: Wall St Engine
Stop using Claude like it's 2024.
Here are the 19 rules I follow when I use Claude: Source: AI evolution
China is moving fast to replace foreign AI chips with domestic ones:
China's AI chip self-sufficiency ratio has risen from ~10% in 2021 to 41% in 2026, a more than 4 times increase in just 5 years, per Morgan Stanley. This ratio shows how much of China’s AI chip demand is filled by local production instead of imports. Morgan Stanley projects this ratio will rise further to ~86% by 2030, meaning China could meet nearly all of its AI chip demand domestically within 4 years. US export restrictions have accelerated China's push to develop domestic alternatives, and the results are advancing faster than most of the world expected. Source: Global Markets Investor
Pullbacks do happen GS: "While the trend is higher, we have seen multiple pullbacks in AI, making the case for short-term hedging"
Source: TME
The dispersion of public market returns between sellers and buyers of AI.
Note however it feels weird to find Alphabet $GOOGL in the "loser" camp as the stock is up 130%+ over the last 12 months. Some buyers of product shortage are able to perform well as long as investors see clear evidence that its AI investments are turning into real revenue and profit growth — not just hype. Alphabet's cloud computing business has been delivering much better than expectations. Source: Tanay Jaipuria
China will go from being almost completely reliant on chips from external sources to almost completely self-sufficient in just ten years - per MS
Source: David Ingles
