DeepSeek’s latest R1 AI model, offering better performance at a lower cost, barely registered in the tech world. This is a stark contrast to early 2025, when the original R1 model sent tech stocks plummeting and raised concerns about the generative AI boom.
Experts believe this subdued reaction shows investors now have a clearer grasp of the AI market. While DeepSeek’s model remains strong, its cost advantage isn’t as significant as before. Plus, most top AI models perform similarly because they’re trained on comparable data, making it tough for new releases to stand out. Now, widespread distribution and easy access—think enterprise accounts or platform integration—are proving more vital than just raw performance or price.