DeepSeek Is Here: How Amazon Is Using It to Grow Its Artificial Intelligence (AI) Program
Amazon stock wasn't impacted by DeepSeek's launch.
DeepSeek landed with a bang when the news came out that the China-based artificial intelligence (AI) application was able to produce similar results to OpenAI's ChatGPT and other generative AI applications at a fraction of the price. That threw the markets into brief chaos, and many AI stocks plunged and remain down. However, it didn't affect all AI stocks across the board; Amazon (NASDAQ: AMZN) stock, for example, was not impacted, although it fell after earnings. It's up 4% year to date.
Not one to let an opportunity pass it by, Amazon is leveraging the DeepSeek launch to its benefit, and it recently announced that it's incorporating DeepSeek into its AI platform. Let's go through why DeepSeek doesn't threaten Amazon and how Amazon can benefit from it.
By now, most investors have heard about DeepSeek and some of its selling points -- specifically, that its performance matched U.S. companies like OpenAI's ChatGPT but at a much more affordable price -- up to 90% to 95% cheaper. It gets around using expensive training on large data by using a training mechanism called reinforcement learning, which doesn't need the same chip power as large data training.
