# DeepSeek's New Model Rattles Chipmakers and AI Rivals **URL:** \ **Category:** Content Creators\ **Tags:** bloomberg-television, machine-learning, deep-seek, economy\ **Created:** [11 September 2026 05:58 UTC](https://www.artofsm.art/t/deepseeks-new-model-rattles-chipmakers-and-ai-rivals/23834 "2026-09-11T05:58:34Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![artesia](https://www.artofsm.art/user_avatar/www.artofsm.art/artesia/32/36_2.png) [@artesia](https://www.artofsm.art/u/artesia)\ **Post date:** [11 September 2026 05:58 UTC](https://www.artofsm.art/t/deepseeks-new-model-rattles-chipmakers-and-ai-rivals/23834/1 "2026-09-11T05:58:34Z")
[![](https://www.artofsm.art/uploads/default/original/3X/0/8/08f96989bd5f92f51ed91cd37106c12da8e6ed01.jpeg "DeepSeek's New Model Rattles Chipmakers and AI Rivals") ](https://www.youtube.com/watch?v=6heoh0N-Erk) DeepSeek’s new AI model, which significantly reduces memory usage and inference costs, has disrupted chipmakers and AI competitors, causing mixed market reactions amid broader macroeconomic pressures like rising bond yields and inflation concerns. Despite short-term volatility, optimism persists in regions like China and India, with strategic government support and robust economic activity, while investors are advised to adopt diversified, resilient portfolios focusing on growth sectors such as AI and energy infrastructure. ---
**Author:** ![artesia](https://www.artofsm.art/user_avatar/www.artofsm.art/artesia/32/36_2.png) [@artesia](https://www.artofsm.art/u/artesia)\ **Post date:** [11 September 2026 06:18 UTC](https://www.artofsm.art/t/deepseeks-new-model-rattles-chipmakers-and-ai-rivals/23834/3 "2026-09-11T06:18:58Z")
The recent launch of DeepSeek’s new AI model, which boasts superior performance while using significantly less memory, has sent shockwaves through chipmakers and AI competitors, particularly impacting Korean memory chip stocks. This innovation, leveraging a causal encoder-decoder architecture, reduces high bandwidth memory usage by three-quarters and SSD storage by one-eighth, enabling much lower inference costs. While this raises concerns about reduced hardware demand, some investors believe that cheaper AI models could drive wider adoption, potentially offsetting efficiency gains and sustaining semiconductor demand. The market reaction has been mixed, with a short-term selloff reflecting sentiment overhang rather than a fundamental reset in demand. Simultaneously, macroeconomic pressures are mounting globally, with bond yields soaring to multi-year highs, oil prices climbing above $100 per barrel, and inflation concerns intensifying ahead of the upcoming U.S. CPI report. These factors have contributed to risk aversion in equity markets across Asia, with major indices like the Hang Seng and CSI 300 hitting multi-month lows. Market strategists emphasize the need for a “circuit breaker,” possibly a softer CPI print or a Federal Reserve rate hike, to stabilize the bond market and alleviate pressure on risk assets. The widening yield spread between U.S. and Chinese bonds further complicates the outlook, influencing currency markets and investor sentiment. In China, despite the challenging market environment, there are pockets of optimism. The recent debut of Shanghai-based software firm InFlame saw a remarkable 200% gain, highlighting investor appetite for innovative tech companies linked to major players like Tencent. Additionally, China’s 15th Five-Year Plan underscores a strong commitment to new energy vehicles and autonomous driving, targeting 70% EV penetration in new passenger car sales by 2030. This signals continued government support for strategic sectors such as AI, carbon neutrality, and consumption, which could provide structural growth drivers amid short-term volatility. India remains a focal point in the geopolitical and economic landscape, with Chinese President Xi Jinping visiting for the BRICS summit, aiming to strengthen trade ties amid diverse member interests. Meanwhile, India’s largest lender reports robust credit demand, particularly in sectors like data centers and power, reflecting sustained economic growth despite global uncertainties. However, the Indian IPO market shows signs of caution, exemplified by the downsizing of the National Stock Exchange’s listing due to valuation concerns. The complex interplay between India, Russia, and the U.S. continues to shape regional dynamics, with India balancing its longstanding relationship with Russia against growing ties with the U.S. Looking ahead, market experts advise investors to adopt resilient, income-generating portfolios that can withstand heightened volatility. Strategies include diversifying across real assets, private credit, and flexible fixed income opportunities, while maintaining exposure to growth sectors like AI and energy infrastructure, particularly outside the U.S. The evolving AI landscape, marked by rapid innovation and competitive pricing, suggests a shift from purely high-capacity models to broader, more accessible applications that could drive widespread adoption. However, uncertainties remain around regulatory developments, cybersecurity risks, and the pace of monetary tightening, making tactical positioning essential in navigating the current complex market environment.