This podcast discusses the macroeconomic implications of DeepSeek, a Chinese AI startup's development of cost-effective large language models (LLMs). The speaker, Vishy Tirupattur, argues that DeepSeek's advancements, similar to past computing cost reductions, will likely increase overall AI demand, leading to higher business spending on AI infrastructure and boosting productivity. He draws parallels to the 1990s investment boom driven by cheaper computing and cites the Jevons paradox to support the idea that lower costs increase consumption. While acknowledging early stages and potential variations at the stock level, Tirupattur concludes that the overall economy will benefit from increased competition and wider AI adoption. The podcast concludes with a call to action for listeners to provide feedback.
