Jan. 29, 2025 - Freedomain Radio - Stefan Molyneux
06:22
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| Time | Text |
|---|---|
| Now, of course, what happened last night, as far as I understand it, and we'll get into the crypto thing in a bit. | |
| So, basically, into today, DeepSeek erased $2 trillion of market capitalization because the AI companies, and in particular, NVIDIA, which I think last I saw, was down like 17%. | |
| And we knew that because Nancy Pelosi stole some last month. | |
| So, DeepSeek erased $2 trillion of market capital because, of course, If you don't need 50,000 NVIDIA chips, then the value of NVIDIA goes back to basement gamers. | |
| So, NVIDIA lost over $600 million in market cap. | |
| Other semiconductor companies like Micron Technology and Arm Holdings each fell 7%. | |
| ASML saw a 9% drop. | |
| MegaCap, tech firms, Microsoft, and Alphabet fell 4%. | |
| MetaPlatforms dropped almost 2%. | |
| So, this is from GrokDeepseeks. | |
| Rise has led to a sharp decline in stock market values, especially in the tech sector. | |
| The Nasdaq fell more than 3% due to deep-seek news, with Nvidia being one of the biggest losers, stumbling more than 17% in a single day, a loss of over $600 billion in market value for Nvidia alone. | |
| Now, again, market value, it's not a useless metric at all, but it's not like people just took a bunch of money and set fire to it. | |
| That's the job of the Fed. | |
| Yeah, investors are concerned about the competitive threat DeepSeek poses to established US AI companies like NVIDIA. So DeepSeek's ability to offer AI capabilities at a lower cost and with less advanced hardware has caused investors to question the value and future profitability of investments in high-cost AI development by US companies. | |
| It brought a sell-off in AI-related stocks and so on, right? | |
| And as far as I understand it, the app, the DeepSeek app, We'll only go to July of last year, but the website is up to date with sort of current information. | |
| I also did, I did look at, I didn't install the app because China, but I did look at the privacy stuff and they're like, yeah, you know, they'll actually hang on to not just your keystrokes, but your keyboard typing patterns. | |
| Like, it's just wild. | |
| It's just wild what they're grabbing and I wouldn't install it for the life of me, but I know some, obviously a lot of people, a lot of people have. | |
| So, the sentiment among investors is one of worry and re-evaluation. | |
| Deep-seek success in prompting and rethinking of the AI narrative that has driven market performance in recent years. | |
| Some see it as an overblown reaction. | |
| The market might be looking for an excuse to sell off. | |
| Others view it as a legitimate threat to the dominance of US tech companies in AI. But on the plus side, at least America did invest in a whole bunch of diversity initiatives. | |
| Because that really matters, right? | |
| There has been a global sell-off not just in the US. Investors from Tokyo to New York have sold off tech stocks. | |
| Because if there is this cost-effective and AI model from China, that's going to be pretty wild. | |
| So, DeepSeek is omega bullish for Bitcoin. | |
| So, let's sort of figure out what this means. | |
| So, DeepSeek is a mega-bullet for Bitcoin. | |
| NASDAQ is crashing pre-market and taking Bitcoin down with it, but this is a temporary correlation. | |
| Bitcoin is the solution to the store of value problem. | |
| Bitcoin will not change. | |
| Bitcoin will not be disrupted and cannot be seized or debased. | |
| In an era of rapid change, Bitcoin's boring predictability is its biggest strength. | |
| This should be something we celebrate, not fear, because it disrupts equity markets and takes down our store of value assets. | |
| Hold Bitcoin, celebrate creative disruption, and get outside. | |
| The argument is that DeepSeek as an AI tool has triggered a significant drop in Bitcoin's value, correlating with a pre-market crash in the NASDAQ, although the correlation is seen as temporary. | |
| DeepSeek is revealing the overvaluation of US tech stocks, especially as Chinese companies are innovating in AI and robotics at a lower cost, which challenges the high valuations of US tech companies. | |
| I would assume as well, but without any particular proof, this is just an assumption, that people had Stop losses. | |
| As the stocks fell, they had stop losses triggered, so they had to sell, and they had to cover losses, and they might have sold crypto to cover their losses. | |
| That would be my guess. | |
| I say this as a sheer and complete guess. | |
| So, DeepSeek was originally conceived, I've read, as a sort of just a hustle-aside project. | |
| So DeepSeek, a Chinese AI startup founded in 2023 by Liang Wenfeng, has swiftly unsettled global markets with its groundbreaking and cost-effective AI models. | |
| Its rapid ascent has rippled across US equities, notably affecting Nvidia shares, even introduced turbulence into the cryptocurrency sector. | |
| Plus, you know, there are a lot of boomers out there who do think that if you get better AI, you're going to be able to crack Bitcoin, which I, of course, do not believe to be true at all. | |
| I do not believe that to be true at all. | |
| So, I mean, they'll just raise the cryptography, right? | |
| So, the 5.5 million AI models that left Silicon Valley scrambling. | |
| Now, is it true, right? | |
| Is it true? | |
| Remember, all that is international is hostile, right? | |
| All that is international is hostile, which means, just as we did with COVID, as I talked about even in early 2020, do not trust... | |
| The data coming out of China. | |
| So, is it true? | |
| Has it been independently verified that this thing only took $5.58 million to train and is basically free? | |
| In other words, DeepSeek V3, 671 billion parameters, yet was developed for a mere $5.58 million? | |
| I don't know. | |
| I don't know. | |
| Until it's independently verified by neutral third parties. | |
| I have doubt. | |
| I have doubt. | |
| But it just goes to show you how effective an economy can be when it's not worried about all of this endless political correctness stuff, right? |
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