Markets and DeepSeek-The New Hotness

I have been playing with DeepSeek for a few weeks, but over the weekend it became all the rage and caused NVDA stock drop by 18% as of this writing. It caused other companies that are part of the supply chain for AI hardware to drop substantial amounts as well.

A broad tech route makes little sense. If the high performance of DeepSeek is correct, that means the application side of AI can be more productive and significantly cheaper. The market didn’t show this and this lack of logic shows you how the market isn’t always rational, which counters the popular theory of rational markets.

I will drop another post tomorrow comparing DeepSeek to OpenAI and show how they are VERY related so much so that they appear to have used the same training data.