A Lineless World: AI, X, Darkness

This podcast episode discusses the impact of DeepSeek, a new AI model, on the stock market and the broader economy. The hosts analyze DeepSeek's rapid rise to prominence, its potential implications for AI-related investments (particularly Nvidia), and the resulting market reactions, including a significant drop in market capitalization and a flight to safety in the bond market. They also explore the ethical and legal implications of a hypothetical scenario where DeepSeek's creators profited from shorting Nvidia stock. Finally, the discussion touches upon the increasing prevalence of off-exchange trading ("dark pools") and its potential consequences for price discovery in the stock market. The episode concludes with speculation on the SEC's potential response to these trends.