Invesco EMEA’s Post

The frailty of the US markets as regards developments in AI is more of an indication of the gamble that many investors are playing in trying to be the providers of picks and shovels in the 21st century gold rush. However what is different here is that we are not mining gold, we are using technology to solve customer problems or needs, where there is value which is being ignored by investors - and the challenge is that much of the picks and shovels investment seems to ignoring just how many people are needing the picks and shovels. Or to break through the analogy back into the real world - AI solves some problems, but it is not a panacea that many believe it to be. The measure of success is just how many developments actually turn into solutions that people actually pay for, and there is still a lot of fluffy ideas out there about what AI can do, most of which are wrong and some is correct. The market correction (otherwise referred to as the next AI winter) will be coming...

Chinese AI firm DeepSeek has emerged as a potential challenger to U.S. AI companies, demonstrating breakthrough models that claim to offer performance Chinese firm’s efficient AI model raises questions about Big Tech’s massive infrastructure spending plans. https://lnkd.in/gQsUfCHJ

Very interesting outlook on the recent market frenzy driven by question marks on big tech investments in AI. As Roy Amara, an American futurist, said, “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” Should we expect substantial market volatility as AI applications develop in the next months and years?…probably… will this technology eventually impact most industries and the way we leave…certainly! A history-lover’s guide to the market panic over AI https://lnkd.in/dGPGc57m from The Economist

Could AI Be Worth a Whopping $20 Trillion In The Next Tech Wave? 💰🤔 An intriguing analysis by Fundrise suggests we underestimate artificial intelligence's potential value. Just like past technological revolutions, AI is poised to display similar patterns and consistency. Are we on the brink of an innovation breakthrough worth plenty many zeroes? Does history indeed repeats itself in tech as well? Decipher through lessons from the past to predict the potential future of AI technology right here: https://lnkd.in/dA3dg3EN. Let's open up this tech tidbit treasure chest together! 🔎💡 #ArtificialIntelligence #AIValue #TechTrends #InvestingInAI #FutureTech #NextTechWave #DigitalRevolution #DataScience #MachineLearning #InnovationBreakthrough

Food for thought from Imad Riachi “Is there too much hype in AI?” is the number one question we ask today. Well that and “is a US recession coming” From Imad : “Some of us in the AI community have known for some time that there are gaps in intelligence that will stall AI’s leap from tactical workhorse to high-level decision maker in business. I do remain firm in the belief that AI will be the game changing technology and deliver value that would lead to mainstream adoption. But not in the hype we see today. “ Thoughts ? https://lnkd.in/egWJb9Kq #AI #ArtificialIntelligence

Prompt: Develop a model that surpasses its own capabilities in all aspects at a cost reduction of 1,000 times. Response: 1. deepseek >> 2.marketcrash >> 3. Hype busted https://lnkd.in/dpDaUGFc #deepseek #stockmarket #nasdaq #marketcrash #nvidia #llm #microsoft #artificialintelligence #ai

Could AI Be Worth a Whopping $20 Trillion In The Next Tech Wave? 💰🤔 An intriguing analysis by Fundrise suggests we underestimate artificial intelligence's potential value. Just like past technological revolutions, AI is poised to display similar patterns and consistency. Are we on the brink of an innovation breakthrough worth plenty many zeroes? Does history indeed repeats itself in tech as well? Decipher through lessons from the past to predict the potential future of AI technology right here: https://lnkd.in/d5UNRjGd. Let's open up this tech tidbit treasure chest together! 🔎💡 #ArtificialIntelligence #AIValue #TechTrends #InvestingInAI #FutureTech #NextTechWave #DigitalRevolution #DataScience #MachineLearning #InnovationBreakthrough

China’s latest move in artificial intelligence has set off a chain reaction in the global tech industry, and the United States is feeling the tremors. The unveiling of DeepSeek, an advanced AI model developed in Hangzhou, is more than just another technological milestone—it’s a statement. For years, American companies like OpenAI, Google, and Meta have poured billions into AI development, betting on computational power and proprietary systems to maintain dominance. DeepSeek, however, has flipped the script. Built at a fraction of the cost—reports suggest its training budget was around $5.6 million, compared to the hundreds of millions spent on U.S. models—this AI powerhouse is proving that innovation isn’t just about resources; it’s about approach. The markets wasted no time reacting. Within days of DeepSeek’s announcement, U.S. tech stocks took a nosedive. Nvidia, one of the biggest beneficiaries of the AI boom, saw a staggering drop in its market value. Analysts scrambled to explain the shockwaves, but the message was clear: China is no longer following the U.S. in AI development; it’s racing ahead in its own lane. Beyond the financial markets, DeepSeek has ignited a bigger conversation about the future of AI. The United States has long favored a closed, proprietary model, building advanced systems behind paywalls and corporate licenses. China’s approach with DeepSeek is different—leaner, more open, and designed for broad accessibility. This shift isn’t just about geopolitics or industry competition; it’s about who gets to shape the future of AI. As Scale AI CEO Alexandr Wang recently pointed out, China is catching up faster than expected. While some in Silicon Valley remain confident in America’s dominance, others see this moment as a wake-up call. The race isn’t just about who builds the best model; it’s about who builds a model that the world actually uses. DeepSeek has made its first move, and the global AI landscape will never be the same. Whether the U.S. doubles down on its existing strategy or pivots toward a more adaptive, cost-efficient approach remains to be seen. One thing is certain—ignoring China’s latest AI breakthrough is no longer an option. Let's hear what you think in the comment.

DeepSeeks version of Steve Jobs "and one more thing" - even before the AI tech incumbents had a chance to catch their balance from the impact of the DeepSeek R1 chatbot, the Chinese company launches a vision model as well - Janus Pro 7B. And just like the chatbot, the vision model outperforms existing models in tests. A lot has been said about how disruptive what DeepSeek has done is, and it is confirmed by the heavy losses on the stock exchanges. What I find more interesting, is that it demonstrates the speed of disruption and innovation in the AI field. Compared to disruption in other fields, like when Amazon changed retail, this happens a lot faster. And it will happen again, and sooner than many would think. Todays GenAI is far from being able to realise the potential we want from AI. Yes, they are very useful for improving efficiency in many tasks. However, we are still a long way from being able to fully embed AI into every aspect of how live and work, and that it is available for everyone globally. My bet is that the next major disruption will come in the form of smaller, possibly quantum enhanced models, that can far outperform todays LLMs and SMLs - running on any chipset you need, thus enabling truly AI powered edge solutions. But time will tell. Until then it will be interesting to see how the playing field looks post the DeepSeek earthquake that shook Silicon Valley. One thing we can be sure about is that AI will now be more democratised - and that is a good thing. https://lnkd.in/dfHDkYWj

In a CIO Roundtable, Voya Investment Management’s panel of experts discussed the implications of the AI boom on the economy and investment strategies. Voya highlighted that while AI investments are driving U.S. equity markets higher, the transition to profitable AI solutions could face delays. For more insights into the AI spending spree and its effects on the market, read the full article: https://lnkd.in/g3XZnnXe #AI #Investing #ResponsibleInvesting #MarketInsights