DeepSeek jolts AI industry: Why AI’s next leap may not come from more data, but more compute at inference

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More The AI landscape continues to evolve at a rapid pace, with recent developments challenging established paradigms. Early in 2025, Chinese AI lab DeepSeek unveiled a new model that sent shockwaves through the AI industry and resulted in a 17% drop in Nvidia’s stock, along with other stocks related to AI data center demand. This market reaction was widely reported to stem from DeepSeek’s apparent ability to deliver high-performance models at a fraction of the cost of rivals in the U.S., sparking discussion about the implications for AI data centers. To contextualize DeepSeek’s disruption, we think it’s useful to consider a broader shift in the AI landscape being driven by the scarcity of additional training data. Because the major AI labs have now already trained their models on much of the available public data on the internet, data scarcity is slowing further ... Read full article.