DeepSeek’s open-source models may soon revolutionize Microsoft Corporation (MSFT) and OpenAI’s AI development processes. By reducing costs and improving efficiency, these models could make advanced AI technologies more affordable and practical for businesses. However, the initial training cost reported for DeepSeek-V3 seems misleading—it doesn’t account for significant hidden expenses like compute power requirements.
The models’ ability to lower token prices dramatically could empower Microsoft’s Azure services with more accessible and cost-effective AI solutions. This could accelerate innovation across industries reliant on Azure.
Analysts note that despite market volatility, DeepSeek’s advancements present a strong investment opportunity for Microsoft. These developments could drive broader institutional adoption of AI technologies and foster deeper integration into core business operations.
Investors should consider the potential long-term benefits while remaining mindful of ongoing research and development costs. The situation remains fluid, so staying updated on progress will be crucial for informed decision-making.
Analyst Disclosure: I have a long position in MSFT shares through a stock ownership stake and receive compensation from DeepSeek. This article is my personal opinion without any bias.
Seeking Alpha’s Disclosure: Past performance is not indicative of future results. Seekers should consult their investment advisor before making decisions.
Source: https://seekingalpha.com/article/4752630-deepseek-microsoft-massive-value-catalyst