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The shares in the chip producer were lower in pre-market trading, after completing Friday’s session with a 3 %decrease, after launching last week by the Chinese generative AI program Deepseek, who claimed to be able to transition rival offers to a fraction of their costs .

Deepseek- which is funded by the Chinese quantum company High-Flyer made its R1 large language model (LLM) open source and also released a paper that describes how advanced LLMs can be built on much smaller budgets.

The project only took $ 6m (£ 4.81m) to train, and it seems to perform on par with leading AI models despite US government’s restrictions on export of advanced chips.

Deepseeks apparently progress has raised questions about the computing power needed to develop AI systems, a key driver for AI shares.

Read more: FTSE 100 LIVE: The shares fall as DEEPSEEK’s new model is weakening the technology

“Deepseek obviously does not have access to as much computers as US hyperscals, and somehow managed to develop a model that appears very competitive,” said Raymond James analyst Srini Pajjuri. Wall Street Journal. “The natural question is how Deepseek’s emergence will affect intensity growth and demand for hardware/semiconductors?”

Alphabet, Google’s parent company, was a trend in trading before the market today, despite the fact that it showed limited movement. Investors offer their time ahead of 4th quarter earnings report scheduled to be published on February 4th.

Wall Street analysts foresee robust results for the technology giant. They expect growth in earnings per year. share (EPS) of 29%, reaching $ 2.12, with a turnover that increases by 12% to $ 96.7 billion. in the quarter.

Google’s core business – Internet search advertising – is expected to see an increase of 11%, a total of $ 53.29 billion. Meanwhile, YouTube’s ad revenue is expected to grow by the same percentage and reach $ 10.24 billion. USD. Alphabet’s Cloud Computing Department is also on its way to a good performance with expected growth of 32 % to $ 12.1 billion.

The Q4 earnings will be the first for Alphabet’s new CFO Anat Ashkenazi, who is expected to explain his strategic priorities to analysts.

Alphabet is also still a popular choice among hedge fund managers. According to Insider-abe Data has 202 hedge fund investors increased their positions in the company. Investors are especially attracted to Google Cloud, which continues to grow with a 35% year-to-year rate generating $ 11.4 billion. USD in quarterly turnover.

Shares in the Chinese stock were in trend, after completing Friday’s session with an increase of 3.5 %, in the midst of rising speculation about the company’s potential in artificial intelligence, especially driven by progress from AI-Startup Deepseek.