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We recently compiled a list of the 10 AI News Investors Probably Missed. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other AI stocks.
A December 30 report by CNBC discussed the rapid adoption of generative AI by businesses, its potential to significantly impact global GDP, and the varying perspectives of leaders on its future. As per the report, generative AI has evolved from a novelty to a key tool for businesses, with nearly two-thirds of organizations using it for tasks like customer service automation and data analysis. While its growth could potentially boost global GDP by $7 trillion in the next decade, opinions among business leaders vary. Jamie Dimon and Bill Gates view AI as transformative, comparing it to past technological breakthroughs.
However, Sundar Pichai and Satya Nadella caution that further advancements will be slower, requiring deep innovation. Meanwhile, concerns about AI's ethical risks, highlighted by Warren Buffett and Mark Cuban, suggest the technology could have unintended consequences, despite its growing importance in industries like defense.
READ ALSO: 9 Important AI News and Ratings on Investors' Radar and 10 AI News Investors Shouldn't Miss.
Open-Source AI from China Takes on Major U.S. Models with Fractional Costs
CNBC’s TechCheck anchor, Deirdre Bosa reported on December 30 that DeepSeek, an open-source AI model developed by a Chinese research lab, has emerged as a serious competitor to leading models like GPT-4 and LLaMA 3.1. Despite using lower-cost H800 chips, which are less powerful versions of the H100, DeepSeek outperformed these models in key benchmarks and was built for just $5.5 million, a fraction of the cost of other frontier models that require hundreds of millions or even billions to develop.
This signals a shift toward more commoditized AI models, where progress relies less on building new infrastructure and more on optimizing existing models. The development raises concerns for investors in major U.S. tech companies, as it challenges the long-standing dominance of firms like OpenAI. Additionally, the success of DeepSeek highlights the potential advantage of open-source models, suggesting that nations like China, without access to the latest chips or massive investments, could still compete effectively in the AI race, Bosa mentioned. The implications of this development, particularly for the U.S.-led AI dominance and global geopolitical dynamics are expected to unfold further in 2025.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.