(Kuala Lumpur, 3rd) China's AI DeepSeek has shaken the market, however, analysts pointed out that with DeepSeek's Low Stock Price and efficiency, it can make Datacenters more profitable, which is beneficial for related construction stocks in Malaysia.
The cost of the DeepSeek model is only 5.6 million USD (25.16 million Ringgit), which has stunned the market, because this is just a small fraction compared to the billions invested by USA companies, and it may also impact the demand for Datacenters in the future.
It is unknown whether the 5.6 million USD refers to the cost of the final round of training, or whether the overall cost from scratch is far higher than this figure, but if true, this represents a completely new breakthrough.
Analysts from the investment bank pointed out that, from a low-cost perspective, the actual progress of DeepSeek helps to become a catalyst, driving demand in the entire Datacenter sector.
Analysts pointed out that, based on the current trend, AI training is expected to improve efficiency by 30%, but this does not mean that the demand for chips and Datacenters will decline by 30%.
On the contrary, while improving efficiency, companies that often complain that AI cannot provide the target ROI might achieve their target returns through more efficient AI models.
Furthermore, according to the Jevons Paradox, when technology advances, the required resources tend to increase, and driven by relatively resilient demand, higher efficiency can lead to lower prices while also enhancing AI...

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