Deep Dive: Investors waiting for next big leap in AI after DeepSeek launch

‘Waiting for the next big ignition’

The launch of DeepSeek’s R1 model sent a tsunami through markets, with investors still reeling from the shock and wondering where the next big leap in the AI sector will come from.

Back in January, the Chinese startup unveiled an AI tool, positioned to compete against Western-backed models at a fraction of the research and development cost. The launch rattled US equity markets and its main, tech-heavy Nasdaq spiralled on the day. Nvidia, the darling AI stock, experienced the worst one-day fall in a company's market cap value in Wall Street history, with its share price taking a 17% dip, shedding approximately $600bn. Nearly two months on from the initial shock, investors are still wondering how competition in the AI field will unfold. "Some people wil...