RE: 8p First IPO price. Then 12p on deal/agreement news29 Jan 2025 09:13
Investing.com -- The breakthrough in AI technology by Chinese startup DeekSeek's r1 model has the potential to benefit the software sector, Citi analysts said.
DeepSeek's "test-time scaling law" achieves AI efficiency at a fraction of the cost compared to OpenAI. This raised questions about the sky-high capital expenditures (capex) across hyperscalers including the recently announced Stargate Investment, and led to a sharp sell-off in global technology stocks.
However, according to Citi, the breakthrough could potentially mark a pivotal moment for AI-enabled software applications.