Join our Chief Investment Officer Tassos Stassopoulos in a conversation with InvestSense hosts Jonathan Ramsay and Daniel Leach, alongside University of Cyprus Computer Science Professor Marios Dikaiakos, as we dive into DeepSeek's AI breakthrough and explore its game-changing implications for the world.
On January 20th, 2025, Chinese AI company DeepSeek released an LLM that is reportedly as good as GPT-4, but for a fraction of the cost USD5 million, without using high-end chips. This move has significant market implications, particularly for companies like Nvidia, whose stock took a hit as investors reassessed the need for massive capital expenditure in AI, including the recently announced ‘Stargate’ $500 billion project.
In this conversation, we assess DeepSeek’s potential effect in democratizing AI development and challenging the belief that only well-funded Western tech giants not only are leading the field, but also creating sustainable moats around their business. DeepSeek’s breakthrough may benefit emerging markets by enabling local AI development without high infrastructure costs. This development could disrupt traditional AI business models, especially for companies relying on expensive data centres and high-end chips.
The shift also suggests a broader economic change, where more affordable and distributed AI solutions could lead to greater adoption across industries and regions. Additionally, DeepDeek’s success with open-source, efficient AI models may prompt a shift in how different regions approach AI development, contrasting with the West’s focus on proprietary models and large-scale infrastructure, in both cases, potentially benefiting consumers and the environment–by reducing AI-related emissions. However, challenges like data quality, training methods, and evolving regulations remain.
For investors, this development indicates the need to re-evaluate what drives competitive advantage in AI, with a potential focus on efficiency and scalability rather than sheer infrastructure investment. The future of AI may favour those who can deliver practical, localized solutions rather than those with the most significant budgets.
Trinetra collaborated with Professor Dikaiakos and his team at the University of Cyprus in 2024, to assess the performance of different state-of-the-art Large Language Models (LLMs), Chat-GPT, Llama, Mistral, Gemini, on analysing transcripts from ethnographic interviews and investigate how close LLM-driven analysis can get to results derived from expert ethnographers and at what cost.
Trinetra Investment Management disclaimer: This material has been prepared by Trinetra Investment Management LLP (“Trinetra”) for information purposes only and it is not intended to be relied upon as a forecast or research. While the information herein is considered to be correct, no representation or warranty can be given on the ultimate accuracy or completeness of such information.
Unless otherwise specified, all views expressed are those of Trinetra. These views reflect current economic and market conditions, which are subject to change.
This material, or any views or opinions expressed herein, does not amount to an investment advice nor does it constitute a solicitation or a recommendation to buy, sell or invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy.
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