KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Aggressive Price Cuts Shake AI Industry
- Chinese AI startup DeepSeek has announced steep discounts of up to 75% on its AI model usage during off-peak hours, according to an update on its website.
- The move is expected to pressure global AI leaders like OpenAI and Google to further lower their prices.
Key Pricing Details
- Off-peak hours (1630 GMT – 0030 GMT) will see:
- 75% reduction in API costs for DeepSeek’s R1 model
- 50% reduction for the V3 model
- While these hours are considered “off-peak” in Beijing (0030 – 0830 local time), they coincide with peak daytime hours in the U.S. and Europe, potentially intensifying competition.
Market Impact & Competitive Pressure
- DeepSeek’s rapid expansion and aggressive pricing strategy have already disrupted global AI markets, contributing to last month’s tech stock selloff.
- OpenAI and Google have responded by introducing their own price cuts for their AI offerings.
- The company is now reportedly accelerating the launch of a successor to its R1 model, signaling continued disruption in the AI industry.
AI Price War & Industry Shake-Up
- DeepSeek’s open-source approach and cost-effective AI solutions have triggered a domestic price war in China since May 2024.
- The impact is now expanding globally, with major AI players forced to rethink their pricing models to maintain competitiveness.
What’s Next?
- With DeepSeek aggressively slashing costs, industry watchers expect further pricing adjustments from OpenAI, Google, and other AI competitors.
- The AI market’s profitability and monetization strategies may face renewed scrutiny, especially with DeepSeek’s push for more affordable AI access.
Comments
Post a Comment