In this article, we discuss 10 AI news you should take a look at.
DeepSeek has gained attention for creating a high-performing model, R1, at a fraction of the typical cost. Its efficient use of resources and open-source approach has prompted discussions on the traditional reliance on expensive AI chips. Despite concerns about reduced demand for high-end semiconductors, experts argue that the growing need for compute power, driven by large-scale AI models, continues to fuel demand for advanced AI infrastructure.
Growing AI Competition Promises Exciting Advancements and Opportunities
As AI continues to evolve, new advancements are pushing the boundaries of performance, cost-efficiency, and accessibility, creating a dynamic landscape for both established players and new competitors. Bernstein analyst Peter Weed highlighted DeepSeek’s potential to drive AI adoption by offering cost-efficient inferencing, which could lead to increased demand.
While some speculate on the impact on AI infrastructure vendors, the firm suggested that software vendors providing data infrastructure, identity management, observability, and communications may be the key beneficiaries. Lower AI model costs could accelerate enterprise adoption, moving projects from proof-of-concept to production faster, and benefit a range of software vendors that have previously lagged behind hyperscalers in growth.
Weed noted:
“If Deepseek puts pressure to further bring down model cost, it may not only increase the number of viable projects but also may accelerate the pace of new projects going into production. This would benefit all the software consumption infrastructure above the hyperscaler level.”
Additionally, in a post on X, Sam Altman acknowledged DeepSeek’s R1 model as impressive, especially for its cost, but emphasized that OpenAI plans to release superior models. He expressed excitement about the competition and reiterated OpenAI’s focus on its research roadmap, highlighting the growing demand for AI and the importance of increased computing power to achieve advancements, including AGI.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 AI News You Should Take a Look At
10. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: N/A
Oklo Inc. (NYSE:OKLO) develops advanced nuclear power plants that recycle nuclear waste to provide clean, reliable energy, supporting sustainable solutions for the increasing power demands of AI.
Craig-Hallum initiated coverage on OKLO with a Buy rating and a $44 price target and noted the potential to exceed $80 as it leads in the advanced modular reactor (AMR) market. AMRs address global energy needs by providing 24/7 zero-emission power with better safety, faster deployment, and lower costs compared to traditional nuclear power. OKLO’s build-own-operate model simplifies adoption and accelerates regulatory timelines as it caters to growing demand from AI and data centers. Significant partnerships with companies like Equinix and Switch have expanded its commercial pipeline to over 14 GW, potentially generating $11 billion annually.
9. Nayax Ltd. (NASDAQ:NYAX)
Number of Hedge Fund Holders: 3
Nayax Ltd. (NASDAQ:NYAX) is a fintech company offering payment solutions and management platforms for retailers worldwide, serving industries such as vending, EV charging, self-service kiosks, and unattended machines.
On January 27, Nayax Ltd. and SECO S.p.A. formed a strategic partnership to integrate Nayax’s payment platform into SECO’s products, starting with a smart screen for vending machines and self-service retail. The collaboration combines secure payments with remote machine management, AI-driven business intelligence, and IoT capabilities. The joint solution, powered by SECO’s IoT-AI software, enables real-time data analysis, intelligent automation, and business insights. The partnership aims to lower operational costs, improve telematics, and offer OEMs a cost-optimized, fully integrated solution across various industries, including vending and electric vehicle supply.
