Did everyone forget about DeepSeek?

Shares of U.S. hyperscalers seem to have put DeepSeek in the rearview mirror. But if you look closely, a different story emerges.

One year ago, a relatively unknown artificial-intelligence lab owned by a Chinese quantitative hedge fund dealt a seismic shock to U.S. tech investors.

U.S. hyperscalers plan over $600 billion in capital expenditures for 2026, a 36% increase, while Chinese firms spend 15% to 20% of that amount.

Jeffrey Emanuel, a tech entrepreneur and former quantitative investor, wrote in a viral blog post, “The Short Case for Nvidia Stock,” 

https://youtubetranscriptoptimizer.com/blog/05_the_short_case_for_nvda

that DeepSeek’s efficiency “suggests the entire industry has been massively overprovisioning compute resources.” But the impact receded from headlines almost as quickly as it had appeared

In 2026, the pressure is on for both American and Chinese companies to prove that their AI investments can translate into tangible economic value.

MarketWatch Jan. 24, 2026

https://www.marketwatch.com/story/did-everyone-forget-about-deepseek-what-wall-street-is-getting-wrong-about-chinese-ai-62cb8bcf


The blogger who helped spark Nvidia’s $600 billion stock collapse and a panic in Silicon Valley. Jeffrey Emanuel says Wall Street banks that are bullish on Nvidia ‘have absolutely no idea what they’re talking about’


DeepSeek on Monday the panic had spread to Wall Street 
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