Malaysia’s benchmark index retreated as profit-taking in key heavyweights weighed on sentiment, while overall market activity remained active. Summary FBM KLCI fell 0.83% to 1,684.93 , dragged by losses in banking and selected large-cap names, despite steady trading participation. Market Performance FBM KLCI : 1,684.93 (-0.83%) FBM Mid 70: -0.00% (flat) FBM Small Cap: -0.23% FBM ACE: +0.20% Broad market was mixed , with weakness concentrated in large caps. Market Breadth & Trading Activity Total volume: 3.54 billion shares Total value: RM4.19 billion Gainers: 456 Losers: 678 Unchanged: 550 Market breadth turned negative , reflecting cautious sentiment. Top Movers – KLCI Gainers Axiata (6888.MY) +1.54% Petronas Gas (6033.MY) +1.18% Sunway (5211.MY) +1.15% Losers Hong Leong Bank (5819.MY) -3.29% Maybank (1155.MY) -3.02% CIMB (1023.MY) -2.47% Banking sector weakness was the main ...
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