The AI world started 2025 with a jolt. Chinese startup DeepSeek released a model that rivalled the best Western systems while claiming a tiny fraction of the usual training cost — and the market reaction was dramatic, briefly wiping hundreds of billions off US tech stocks, with chipmaker Nvidia taking the largest single-day hit in its history.
Beyond the market drama, the signal for businesses is clear: capable AI is getting cheaper and more widely available, accelerating the trend of AI features appearing in everyday tools at lower cost.
Why this matters
- The cost of AI is falling fast — efficiency gains put powerful models within reach of more businesses.
- No provider is untouchable — the competitive landscape can shift overnight.
- Cheaper AI spreads faster — expect it in more of the tools you already use.
- Choose by task, not hype — the model in the headlines won’t always be the right one for you.
What we’d advise
Our advice doesn’t change with the headlines: choose tools based on the job to be done and the protections around your data — not on which model is briefly in the spotlight.
Source: widely reported in January 2025, including by Reuters and the Financial Times.