DeepSeek May Trigger "Negative Capex Impact" As Peak Data Center Occupancy Forecast Faces Revision

The news of the (extremely) cheaper Chinese DeepSeek response to OpenAI's ChatGPT—allegedly "40-50x more efficient than other large language models," according to Goldman's Rich Privorotsky—has triggered a global selloff across the entire AI ecosystem.

The selloff spans chip designers, AI firms, semiconductor equipment manufacturers, AI data center companies, and "Powering Up" baskets tracked by Goldman. "If you can do more with less, it naturally raises the question of whether so much capacity is necessary," Privorotsky noted.

Here are Privorotsky's comments on DeepSeek: