DeepSeek's AI Breakthrough Sends Shockwaves Through Tech Market

Point72 Asset Management founder Steven Cohen recently praised Chinese AI startup DeepSeek for its advancements, viewing them as positive for artificial intelligence. Despite DeepSeek's news causing a tech stock downturn, Cohen argued it's a bullish sign. Point72's AI-focused fund gained 14% in three months.

Point72 Asset Management founder Steven Cohen voiced his support for Chinese AI startup DeepSeek at the iConnections conference in Miami, stating that its recent advances are promising for the future of artificial intelligence. DeepSeek's developments, despite causing a dip in tech stocks, including a 17% drop in Nvidia shares, are seen as bullish by Cohen.

DeepSeek's claim of technology on par with, or surpassing, leading U.S. rivals at lower costs triggered a market reaction. Cohen acknowledged the high valuation of great companies like Nvidia, indicating the inevitability of expensive pricing for leading tech firms.

Cohen emphasized the cyclical nature of technology developments, assuring investors of new companies rising from these innovations. He shared that Point72's AI-focused fund, established three months ago, has already achieved a 14% gain, reaching nearly $1.5 billion.

(With inputs from agencies.)