DeepSeek's AI model fuels competition, Ark's Cathie Wood says

Published 28/01/2025, 13:14
© Reuters.

Investing.com -- The emergence of China's DeepSeek in the artificial intelligence (AI) arena is a positive development that will help tech firms reduce costs and enhance platforms, according to Cathie Wood, Chief Executive Officer at Ark Investment Management.

DeepSeek's new open-source AI model, perceived as a challenge to US tech industry dominance, sparked a 3% decline in the tech-heavy Nasdaq 100 Index on Monday. This event marked the Index's worst performance since December.

Despite this, Wood believes that it is not the appropriate time to increase regulation on the tech industry as DeepSeek intensifies competition in AI costs.

"Lowering costs is great for the world," Wood stated in an interview with Bloomberg TV, adding that while costs were already decreasing, DeepSeek has accelerated the process.

Ark Investment Management, under Wood's leadership, is known for its daring investments in emerging technologies. These investments have led to numerous boom-and-bust cycles in Ark's most renowned fund, the $6.5 billion Ark Innovation ETF (ticker ARKK).

Last year, this flagship fund saw an 8% increase, which was just over a third of the S&P 500's rally. This year, however, ARKK has soared nearly 10%, surpassing the benchmark index's 2.2% gain.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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