DeepSeek, a China-based company that has been listed on US exchanges for some time now, caused a ruckus today after reports claimed its AI model outperformed ChatGPT but cost significantly less.
At the time of writing, global artificial intelligence winners, such as Nvidia and Broadcom are suffering a major blow.
The DeepSeek announcement was not a total disaster for stocks.
One listed company in the US was helped by DeepSeek to rally 200% Monday.
Aurora Mobile Ltd. (NASDAQ: JG) is the stock.
Aurora Mobiles shares soar on R1 Integration
Aurora Mobile’s stock price has more than tripled today after DeepSeek announced that it had integrated its latest reasoning model, “R1”, into GPTBots.ai.
JG’s AI enterprise platform is more efficient and affordable thanks to the integration.
The R1 model is committed to open source, transparency and flexibility. It’s a great tool for collaborative work.
GPTBots.ai also includes Mistral AI (a large language model), Meta’s Llama (a large-language model), Anthropic’s Claude and OpenAI GPT Series.
Jerry Yin, vice president at GPTBots.ai said that the integration of DeepSeek aligns perfectly to our mission of empowering enterprises with advanced AI and unmatched flexible.
DeepSeek model for Aurora Mobile
Aurora Mobile today praised DeepSeek for developing an AI model which is comparable to OpenAI, but costs a fraction as much. In a press release, its VP Jerry Yin said:
This addition allows businesses to meet complex challenges more efficiently and with greater flexibility while still maintaining high standards for enterprise performance.
Aurora Mobile’s stock has risen more than 400% from its 52-week bottom at the time of writing.
This news came a few months after JG announced a revenue growth of 7.0% annually to RMB 78.1 million.
The quarter saw the company incurring higher costs, but it still managed to reduce its net loss 69%.
DeepSeek could hurt Nvidia
DeepSeek is at the forefront of Monday’s financial discussions.
The analysts are divided over what the new AI model will mean for US hyperscalers who have invested billions in artificial intelligence.
The R1 could be the end of Nvidia’s demand, as it indicates that the high-end GPUs are not necessary to run AI.
Some, on the other hand, do not believe that DeepSeek will be a cheaper and more viable alternative over time. In a client note today, Bernstein analyst Stacy Rasgon called the recent sell-off of global AI stocks as “overblown”.
Wall Street has not covered the Aurora Mobile Stock which rose over 200% in value this morning.
But the majority of those that do give it an “A” rating in writing.
Should you invest in this stock? This post appeared first on COINPAPER.COM
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