DeepSeek’s advance puts pressure on energy companies, shares plummet

Chinese company's AI chatbot outperforms ChatGPT
DeepSeek’s advance puts pressure on energy companies, shares plummet
DeepSeek was founded in 2023 in China. Photo: Canal Solar

On Monday (27), the AI ​​chatbot from DeepSeek, a Chinese artificial intelligence company, reached the top of Apple's App Store, suring the popular ChatGPT.

The company said its technology uses far less computing power than the giant data centers that American technology companies have invested heavily in.

This revelation triggered a selloff in the technology stock market, especially impacting companies that supply electricity to these data centers.

Among the worst-hit are Constellation Energy, Talen Energy and Vistra, whose shares plunged 19%, 15% and 21%, respectively. The companies, which own nuclear and natural gas plants, had been benefiting from increased demand for large amounts of power in the technology sector.

Other energy companies also saw significant declines. Nuclear reactor startup Oklo fell 21%, while uranium producer Cameco lost 13%.

The natural gas sector also felt the impact, with EQT, one of the biggest producers, reporting a 7,3% drop and GE Vernova, a gas turbine maker, plunging 18%.

AI-related infrastructure companies have also been hit. Vertiv, which provides cooling solutions for data centers, saw its shares fall 24%, highlighting the widespread impact on the market.

What is DeepSeek?

Founded in 2023 in China, DeepSeek was born as a research department of High-Flyer, a quantitative fund valued at US$8 billion. Since its founding, the company has stood out as one of the most talked about artificial intelligence startups globally.

With the main objective of developing highly efficient AI models aimed at fundamental research, DeepSeek differentiates itself from other companies in the sector by not prioritizing immediate profit, but rather scientific advancement.

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Photo by Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. He has been following the Brazilian electricity sector since 2020.

Answers of 2

  1. Dear friends, we must be very cautious and this exaggerated boasting about a Chinese product deserves even more care. I very well when I was a child and a young man, Coca Cola would send free soft drinks to state and municipal schools, with the aim of getting them addicted or accustomed to its products. There is no such thing as a free banquet, someone always pays. This high-tech world has an amazing speed of innovation, especially in the area of ​​information. Caution and chicken tails, in the right dose, do no harm to anyone.

  2. It is great to know that small alternative advances in technology without immediate profit motives, exploratory monopolies and restrictive control of access to knowledge can bring new horizons and good prospects for a better, fairer and more egalitarian world.
    Big blow to American bigtechs and their boundless arrogance.
    And, of course, congratulations to the Chinese.

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