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Power stocks plunge as energy needs called into question because of new China AI lab

27 January 2025
in World
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Power stocks plunge as energy needs called into question because of new China AI lab
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Power companies exposed to the tech sector’s data center boom, including Vistra, Constellation Energy, Talen Energy, and GE Vernova, saw steep stock declines following the debut of China’s DeepSeek AI laboratory, raising concerns about energy consumption for AI applications. DeepSeek’s AI models have gained attention, with CEO Alexandr Wang stating that their technology is on par with leading American models. The surge in demand for electricity from data centers has led tech companies to explore nuclear power as a reliable, carbon-free energy source, with Constellation and Talen already utilizing nuclear plants to power data centers. Investors are optimistic about Vistra and GE Vernova’s assets, expecting them to benefit from the increasing demand for AI.

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Tags: Amazon.com IncBreaking News: MarketsBreaking News: Technologybusiness newsCalledChinaConstellation Energy CorpEnergyenvironmentEQT CorpGE Vernova IncKinder MorganLabMarketsMicrosoft CorpplungePowerQuestionSatya NadellaStocksTalen Energy CorptechnologyVistra CorpWilliams Companies Inc
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