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Content on this website is intended only for institutional or professional investors and is for informational purposes only. It does not constitute investment advice, a recommendation, or an offer to sell or solicit any security.

DeepSeek R1 – what just happened?

Allianz Global Investors

A private Chinese company, DeepSeek, recently launched a new “large language model” (LLM) – DeepSeek R1 – that resulted in a significant negative reaction to stocks that have previously been seen as artificial intelligence (AI) winners. The reaction can largely be attributed to the view that DeepSeek R1 is able to deliver best of breed results, but at a much lower price point thanks to using fewer and cheaper semiconductors in the training process.

Allianz Global Investors

Monday 3rd February 2025

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