General Can someone explain this to me like I'm an idiot

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kvr28

kvr28

I am the Greengo
Nov 22, 2015
10,931
16,303
Because I am, why the fuck is a chinese AI program causing the stock market to be down so much premarket. Has AI really become that so ingrained in our world that it has that kind of impact.


Nasdaq futures plunged on Monday to lead a stock rout on Wall Street as a Chinese startup rattled faith in US leadership and profitability in AI, hitting Nvidia (NVDA) and other Big Tech stocks.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank 4.3%, while S&P 500 futures (ES=F) tumbled 2.4%. Dow Jones Industrial Average futures (YM=F) fell 0.9%, or about 380 points, on the heels of a winning week for the major gauges.


Markets have been rattled by claims by China's DeepSeek that its AI assistant uses cheaper chips and less data than leading models, but performs equally well. A surge in DeepSeek's popularity has spurred a scramble by investors to reassess bets that AI demand-driven growth will keep fueling gains for stocks.

AI bellwether Nvidia's shares tumbled over 11% in pre-market trading, as chip-related names took a bruising. ASML lost 9%, while Arm (ARM), Broadcom (AVGO), and Micron Technology (MU) also got hammered.

Shares of Meta (META) and Microsoft (MSFT) both slid about 6% amid worries about megacaps' hefty investment in AI. Tesla (TSLA) and Amazon (AMZN) also lost ground as techs sold off across the board.



 
C

CuddleBug

Posting Machine
Nov 18, 2023
610
1,080
It's less that AI is that ingrained in our world, but more the heavy investment in it with the speculation of how ingrained it will increasingly become. The market was heavily invested in it in one general form and now that investment may have been misplaced/mispriced.
 
Hauler

Hauler

Been fallin so long it's like gravitys gone
Feb 3, 2016
48,764
60,782
Just reactionary bullshit.

When everyone sells and the market tanks, wait a day or two and go shopping.
 
Mutant

Mutant

Citizen of the Infernal Empire
Oct 20, 2015
1,250
2,209
I really don't understand AI like last year it was no where and out of the blue it's ingrained everywhere. This seems like a deep state plan to take over everything and make us slaves!
 
W

Wiggy

We. Live. In. A. Fucking. Meme.
Oct 23, 2015
894
1,608
CuddleBug said:
It's less that AI is that ingrained in our world, but more the heavy investment in it with the speculation of how ingrained it will increasingly become. The market was heavily invested in it in one general form and now that investment may have been misplaced/mispriced.
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This. Whether we like it or not, AI is the future and is going to be a part of everything - especially anything tech-related (which is what NASDAQ is).

The news coming out isn't necessarily about Chinese AI, it's about the fact that said Chinese AI was apparently a fraction of the price of what ChatGPT & other AIs cost. So any tech company on the NASDAQ that's invested heavily in AI may find a bunch of that $$$ going *poof* if this Chinese AI alternative is indeed just as, if not more, powerful & capable for a fraction of the price.

Personally, I'd doubt it as China's huge talent is NOT in actually creating anything, but rather, in making pretty poor copies of things other people have already made.

Hauler said:
Just reactionary bullshit.

When everyone sells and the market tanks, wait a day or two and go shopping.
Click to expand...
Also this.

Remember that the market is often (typically) not about what is actually going on, but the perception of what's going on or a reaction to what people *think* is going on.

The scene between Robert Redford & Sir Ben Kingsley talking about "perception in reality" leading to that reality actually happening in the movie "Sneakers" was a great demonstration / explanation of this.

To paraphrase part of their convo - put out news that a bank is failing, the public scrambles, everyone pulls their $$$ outta the bank, ergo, bank fails.
 
Hauler

Hauler

Been fallin so long it's like gravitys gone
Feb 3, 2016
48,764
60,782
Mutant said:
I really don't understand AI like last year it was no where and out of the blue it's ingrained everywhere. This seems like a deep state plan to take over everything and make us slaves!
Click to expand...
I will not go quietly into the night!

Nor will I take Chyna at their word that they have created something better than American tech. That would be completely contrary to their usual modus operandi - which is to reverse engineer current tech and make it cheaper with slave labor.
 
W

Wiggy

We. Live. In. A. Fucking. Meme.
Oct 23, 2015
894
1,608
The one thing I will say is that if you were gonna be "afraid" (not the right word, but you get the idea) of China doing anything, it'd be them copying AI, then doing even more nefarious shit with it.

For example, for several years, they've had an AI-powered mass surveilance system to help enforce their social credit score system.

The system's name is literally "Skynet".
 
sparkuri

sparkuri

Pulse on the finger of The Cimmunity
First 100
Jan 16, 2015
38,729
51,028
kvr28 said:
Because I am, why the fuck is a chinese AI program causing the stock market to be down so much premarket. Has AI really become that so ingrained in our world that it has that kind of impact.


Nasdaq futures plunged on Monday to lead a stock rout on Wall Street as a Chinese startup rattled faith in US leadership and profitability in AI, hitting Nvidia (NVDA) and other Big Tech stocks.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank 4.3%, while S&P 500 futures (ES=F) tumbled 2.4%. Dow Jones Industrial Average futures (YM=F) fell 0.9%, or about 380 points, on the heels of a winning week for the major gauges.


Markets have been rattled by claims by China's DeepSeek that its AI assistant uses cheaper chips and less data than leading models, but performs equally well. A surge in DeepSeek's popularity has spurred a scramble by investors to reassess bets that AI demand-driven growth will keep fueling gains for stocks.

AI bellwether Nvidia's shares tumbled over 11% in pre-market trading, as chip-related names took a bruising. ASML lost 9%, while Arm (ARM), Broadcom (AVGO), and Micron Technology (MU) also got hammered.

Shares of Meta (META) and Microsoft (MSFT) both slid about 6% amid worries about megacaps' hefty investment in AI. Tesla (TSLA) and Amazon (AMZN) also lost ground as techs sold off across the board.



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Because the WEF/China agenda is one.
Scare tactics.
 
IschKabibble

IschKabibble

zero
First 100
Jan 15, 2015
17,571
23,881
Wiggy said:
The one thing I will say is that if you were gonna be "afraid" (not the right word, but you get the idea) of China doing anything, it'd be them copying AI, then doing even more nefarious shit with it.
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That's practically what they did by open sourcing it. It makes our models worthless. It's partly OpenAI's fault for having their engineer share the coding process on a YouTube video. lol
 
IschKabibble

IschKabibble

zero
First 100
Jan 15, 2015
17,571
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n the longer term, it may allow for lower-cost productivity gains and be good for global growth with lower inflation. That would ultimately be positive for bond and equity markets.

But the short- to medium-term implications may be problematic for investors. "The clearest analogy that comes to mind is the [dot-com-era] unwind of the 2000s where an external shock forced a large sector-specific unwind of U.S. tech valuations and capital expenditures with broad-based macro implications," says Saravelos.
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okiebug

okiebug

Active Member
Aug 13, 2024
237
232
Here is a serious answer.

At the Hauge conferences of the early 1900s czar Nicholas II begged the world to ban overly destructive weapons. Nobody listened.

2 world wars followed and since then we have generations who live with the knowledge that the ability to obliterate the earth lies in the hands of a few powerful men.

Now we stand at the precipice of AI and it will obliterate the way normal people have lived their lives for generations. Only greed, laziness and apathy stand in the way of preserving our way of life.

We are truly doomed.
 
IschKabibble

IschKabibble

zero
First 100
Jan 15, 2015
17,571
23,881
The true idiots are the ones playing damage control calling for open source software to be banned. They REALLY don't get it. I hope OpenAI goes out of business.

 
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