KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
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.
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