US stocks took a sharp drop - and experts are feeling wary - after a Chinese artificial intelligence startup posed a threat to America's technology industry.

DeepSeek unveiled a new ChatGPT-like AI model called R1 that operated at a fraction of the cost of OpenAI’s, Google’s or Meta’s models, causing the Nasdaq to plunge by 3.1 percent. 

US markets analyst Scott Shellady says the $5.6 million computing power cost will be concerning for investors, when compared to the hundreds of millions or billions US companies spent.

"The idea that there was any competition would have probably surprised people, which it did."

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US stocks took a sharp drop - and experts are feeling wary - after a Chinese artificial intelligence startup posed a threat to America's technology industry.
DeepSeek unveiled a new ChatGPT-like AI model called R1 that operated at a fraction of the cost of OpenAI’s, Google’s or Meta’s models, causing the Nasdaq to plunge by 3.1 percent.&nbsp;
US markets analyst Scott Shellady says the $5.6 million computing power cost will be concerning for investors, when compared to the hundreds of millions or billions US companies spent.
"The idea that there was any competition would have probably surprised people, which it did."
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.

Best of Business

Scott Shellady: US markets analyst explains why US experts are worried about DeepSeek

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/1fd8fbe9-8276-47ff-aa70-b27300667ed8/transcript