The emergence of Deepseek, a Chinese AI model developed at a fraction of the cost of its US counterparts, has sent shockwaves through the tech industry. Its cost-effectiveness has raised questions about the need for massive investments in AI infrastructure, potentially leading to a reassessment of strategies by major tech firms.

The short-term impact of Deepseek's emergence appears to be bearish for some US tech stocks, particularly those heavily invested in AI. The possibility of more cost-effective AI development could lead to reduced capital expenditure by companies like Meta and Microsoft, potentially affecting their stock prices.

However, it's important to note that the long-term implications of Deepseek are still uncertain. The AI field is rapidly evolving, and it remains to be seen whether Deepseek's approach will become the new standard.