DeepSeek’s low-cost model rattles Australian AI shares

Australian stocks linked to artificial intelligence experienced a sharp decline due to concerns about a new low-cost AI model from Chinese startup DeepSeek challenging current market leaders. Appen and Brainchip shares dropped significantly, with the technology sub-index also down. DeepSeek’s new AI assistant surpassed U.S. rival ChatGPT in downloads, causing a global tech stock crash, with Nvidia losing a record $592.7 billion in market capitalization. Data centre landlords in Australia, including Goodman Group and NEXTDC, also saw declines as fears of reduced infrastructure spending emerged. Analysts anticipate increased demand for data centers with advanced capabilities due to DeepSeek’s model, leading investors to reconsider their AI exposure and possibly shift towards safer sectors like healthcare and staples.

Full Article