00:00AI is becoming cheaper, it is becoming better, and the progress is continuing to increase.
00:07Models are continuing to get better, even though a while ago people thought that it
00:12might stop in 2024, but it has accelerated.
00:16And so I think we're in a place where there's a larger and larger range of tools for people
00:22to choose from, but DeepSeek seemingly definitely is now in the game and people will use it,
00:29but not for everything.
00:30It was clear that they were one of the leading shops in China, but it's a very small outfit
00:37that basically achieved some remarkable AI capabilities.
00:42And that's also another thing that's remarkable about it is that they did so with very much
00:48less resources than some of the big tech firms.
00:51And so that's why it's caused a bit of an upset, because people thought that it wouldn't
00:56really be possible to build such a good AI unless you're big tech.
01:01And so it has changed people's perception on the industry a little bit.
01:06The fact that the market hasn't really been prepared for this news or these latest developments,
01:12I think is reflected by this big sell-off in the NASDAQ, the U.S. tech-focused index.
01:19We've seen the volatility gauge on Wall Street, the fear index is also known to reach its
01:26highest level since mid-December.
01:28So, you know, we're seeing these big reactions, but I think this is a knee-jerk reaction.
01:33It's just a reflection of the surprise that we're seeing in the market as investors struggle
01:40to or rush, should I say, to price in this latest development.
01:45It's just really sort of almost pulled the carpet out, if you like, under this AI trade,
01:51which has been rallying across 2024 and really has had quite an easy ride so far.
01:57This is the first time that it feels that there has really been sort of a disruption
02:02to the potential outlook for AI, or particularly those firms such as Nvidia, who's really benefited
02:09from the run-up so far.
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