DeepSeek will help drive AI into the mass market. But the lion’s share of value likely remains with a few companies continually raising the bar.

DeepSeek’s R1 model has sparked a $1 trillion stock selloff, raising urgent questions about where AI’s actual value resides. While China’s AI breakthrough challenges U.S. dominance, real power will remain concentrated in the high-end market, where top models briefly lead before commoditization. DeepSeek’s role in AI’s mass adoption could benefit U.S. chipmakers like Nvidia, even as it intensifies global competition. Meanwhile, OpenAI and others aim to stay ahead by rapidly evolving model performance. The battle for AI supremacy is accelerating.

My Take

DeepSeek’s rise highlights AI’s shift from model superiority to economic advantage. As foundational AI becomes cheaper and more accessible, true value will be defined by proprietary data, specialized applications, and enterprise adoption at scale. U.S. tech giants can’t rely solely on innovation—they must dominate the application layer, where AI delivers tangible business impact and drives high-margin growth. While open-source AI fuels adoption, proprietary AI remains the real profit driver. Companies with exclusive data and enterprise dominance will capture most of AI’s economic value. The winners won’t just build better models—they’ll own the ecosystems that turn AI into indispensable business tools.

#AI #DeepSeek #ArtificialIntelligence #TechDisruption #AICompetition #China #OpenAI #SiliconValley #Nvidia #Innovation #MachineLearning #AGI

Link to article:

https://www.wsj.com/articles/deepseeks-big-question-where-does-ais-true-value-reside-35a36cd5?st=EHuXvP&reflink=article_imessage_share

Credit: WSJ

This post reflects my own thoughts and analysis, whether informed by media reports, personal insights, or professional experience. While enhanced with AI assistance, it has been thoroughly reviewed and edited to ensure clarity and relevance.