#Economy #WallStreet #AI 

FWIW: Karl Marx explained that that value of every commodity - product or service - is determined by the SOCIALLY NECESSARY LABOUR embodied within it (Note: NOT the ACTUAL labour used to create it).  If a new process comes along, the socially necessary labour affects the value of all commodities. 

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DeepSeek shock wave hits Wall Street 
- World Socialist Web Site---
US tech companies, Wall Street and the political and military establishment have been delivered a major blow with the announcement by a small Chinese startup company, DeepSeek, that it is able to develop an advanced AI system without the most advanced chips produced in the US and at much less cost.

On January 20, DeepSeek introduced R1, a model for solving complex problems. It explained that it had developed a so-called large language model (LLM) which could learn and improve itself without human supervision using lower-level technology and at lower cost. The model was open source, meaning that the process by which it was developed can be followed.

According to the Wall Street Journal: “Specialists said DeepSeek’s technology still trails that of OpenAI and Google. But it is a close rival using fewer and less-advanced chips, and in some cases skipping steps that US developers consider essential.”

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As an article on Bloomberg noted: “Suddenly, a rally predicated on US AI dominance turned into a question of whether the hundreds of billions in AI investments would ever lead to profits large enough to justify the rich valuations afforded to Megacap stocks. The group makes up 30 percent of the S&P 500 by weighting, more than at any time in history.”

Comments from a number of analysts and executives cited by Bloomberg, pointed to the development of a sea change in AI and the market boom it has promoted.