Zuck Dodges AI Selloff On ‘DeepSeek Of The West’ Hype

One of the more interesting aspects of the early-week DeepSeek panic on Wall Street was Meta's resilience. While Nvidia was busy logging the single-largest one-day market cap loss in history (a truly "impressive" $590 billion rout, costing Jensen Huang $20 billion on paper), Meta actually notched a sixth straight daily gain. Indeed, Meta's up 13% already in 2025, with some of that likely due to Mark Zuckerberg's efforts to ingratiate himself with the new regime in Washington. If you didn't lis

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2 thoughts on “Zuck Dodges AI Selloff On ‘DeepSeek Of The West’ Hype

  1. META is a developer of AI models, but what makes it money is being a user of AI models. By adopting DeepSeek’s innovations, META may have better models to use and need less infrastructure to develop them. It will still need plenty of infrastructure, but investors won’t complain if capex undershoots plan. “If” – it is not a given that more efficient training means less total inference compute; there’s an argument to the contrary.

    MSFT is not a developer of AI models, they bought use of OpenAI’s models in return for a very large funding commitment (anyone kept track of how many tens of billions?) Maybe it now looks like it overpaid. MSFT is already not keeping up with OpenAI’s infrastructure ambitions, hence OpenAI is wriggling away from its formerly monogamous relationship with MSFT and left its patron out of the “StarGate” menage-a-trois. Potentially two black eyes in quick succession? Also, the CoPilot 365 rollout and forcible upgrade is getting panned. MSFT Azure can make money hosting models, but it would be better if MSFT apps also led in AI value-generation.

  2. It’s also worth pointing out that Facebook has blown out earnings in all past Q4s of election years. All that election advertisement spending seems to catch the analysts off base every time.