DeepSeek's AI model is a 'minimal threat to AI revolution thesis': Dan Ives

Investing.com -- Wedbush analyst Dan Ives has dismissed concerns about the impact of DeepSeek’s recent AI model on U.S. tech dominance, calling the market sell-off a “golden buying opportunity.” 

In a note, Ives emphasized that while DeepSeek’s language model is impressive, it poses a “minimal threat” to the broader AI revolution being led by U.S. tech giants.

DeepSeek, a Chinese private tech company, recently launched an open-source LLM that rivals OpenAI's ChatGPT and Meta (NASDAQ:META)'s Llama 3.1. 

It quickly became the top app on Apple (NASDAQ:AAPL)'s App Store. Built using reduced-capability chips due to U.S. restrictions, the model has sparked concerns about potential Chinese advances in AI despite chip sanctions. 

Ives noted, however, that questions remain about how DeepSeek circumvented these restrictions and what chips were ultimately used.

Despite the buzz, Ives is confident that DeepSeek is no match for the infrastructure and enterprise-focused efforts of U.S. tech giants. 

“Mag 7 and U.S. tech is focused on the AGI endgame with all the infrastructure and ecosystem that China and especially DeepSeek cannot come close to,” he said. 

The analyst highlighted that global enterprise AI use cases, robotics, and autonomous systems are driving $2 trillion in capital expenditures over the next three years.

Ives also dismissed fears that major companies would rely on DeepSeek for AI infrastructure, stating, “No U.S. Global 2000 company is going to use a Chinese start-up DeepSeek to launch their AI infrastructure and use cases.”

He reaffirmed his bullish stance on Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and other U.S. tech leaders, asserting that DeepSeek’s innovation might even accelerate capital expenditures by hyperscalers. For Ives, the current sell-off is just another opportunity to own leading AI stocks.