DeepSeek achieves its capabilities not from expensive hardware (processors) but from advances in software that can be used on smartphones. The software innovations embedded in DeepSeek have profound financial implications for the companies that manufacture the costly processors needed by conventional AI data centers--Nvidia is the dominant chipmaker in this market--and the Big Tech companies spending billions of dollars (called capex in the financial realm, short for capital expenditures) to create AI tools that they can eventually sell via the subscription model.

Is DeepSeek a Sputnik Moment?

Great Read.