DeepSeek – a China-based startup wreaked havoc on the US-listed stocks today following reports that its latest AI model beats ChatGPT in performance but costs significantly less.
Global artificial intelligence beneficiaries, including Nvidia, Broadcom, Arm Holdings, and even TSMC are taking a significant hit at writing.
However, the DeepSeek announcement did not prove to be an absolute disaster for all stocks.
There’s one listed in the US that DeepSeek helped rally a whopping 200% on Monday.
And that stock is: Aurora Mobile Ltd (NASDAQ: JG).
Aurora Mobiles stock soars on R1 integration
Aurora Mobile stock more than tripled this morning after the company announced the integration of DeepSeek’s latest reasoning model “R1” into GPTBots.ai.
The integration enhances features and improves the overall efficiency and affordability of JG’s enterprise AI platform.
R1 is an open-source model committed to transparency and flexibility making it exceptionally suitable for collaboration.
Other large-language models (LLMs) that have been integrated into GPTBots.ai include Mistral AI, Meta’s Llama, Anthropic’s Claude, and OpenAI’s GPT series.
“The integration of DeepSeek R1 aligns perfectly with our mission to empower enterprises with advanced AI solutions and unmatched flexibility,” according to Jerry Yin – the vice president of GPTBots.ai.
How DeepSeek’s model helps Aurora Mobile
Aurora Mobile hailed DeepSeek today for creating an AI model that matches OpenAI but at a fraction of the cost. Its VP Jerry Yin added in a statement:
With this addition, we’re enabling businesses to tackle complex challenges with greater efficiency and flexibility, while maintaining the highest standards of enterprise performance.
Versus its 52-week low, Aurora Mobile stock is up more than 400% at writing.
The news arrived a couple of months after JG reported a 7.0% annualized growth in revenue to RMB 79.1 million.
The company saw increased costs in the quarter but still managed to lower its net loss by a whopping 69%.
Could DeepSeek hurt Nvidia?
DeepSeek remains at the front and center of all financial debates on Monday.
Analysts seem divided on what it’s new AI model could mean longer-term for the US hyperscalers that have committed billions to artificial intelligence.
Some believe it could pose a serious threat to the demand for Nvidia products as the R1 indicates the company’s high-end GPUs may not be a necessity to run AI after all.
Others, however, are not entirely convinced that DeepSeek could emerge as a viable, cheaper alternative in the long run. Bernstein analyst Stacy Rasgon even dubbed the sell-off in global AI stocks “overblown” in a note to clients today.
Note that Aurora Mobile stock which soared over 200% this morning is not very widely covered by Wall Street.
But those who do rate it a “buy” at writing.
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