| DAILY ISSUE The Chinese AI model DeepSeek R1 made its global debut late last week – and on Monday morning we awoke to a bloodbath. The free, open-source model’s performance equals or betters pretty much everything else out there. And free works: DeepSeek is now the top download at the Apple App Store and Google Play. And it not only caused Nvidia Corp. (NVDA) and AI data center stocks to tank … but also threatened to upend the current tech world order. There are two main reasons why… - DeepSeek reportedly performs similarly to Western learning language models (LLMs) at a fraction of the cost. DeepSeek claims that it spent just $5.6 million to train its R1 model. Western companies have been spending $100 million to $1 billion to train equivalent models
- DeepSeek claims that it uses far fewer and cheaper AI chips for that training. It claims to have used a cluster of little more than 2,000 Nvidia chips to train its V3 model. Equivalent models have required five times that number.
If that’s the case, does the U.S. need more so-called hyperscaler data centers, a new fleet of nuclear power plants, and a full electricity grid buildout? We’ll find out in the months to come. Meanwhile, the market has recovered some since Monday – though not Nvidia. But plenty of hard questions remain about the future profitability of the tech companies that have been riding the AI Revolution to big profits so far. The market is asking whether all the billions in spending planned by these companies is really necessary. So, earlier this week, I sat down with InvestorPlace Editor in Chief Luis Hernandez and my AI Revolution Portfolio partners – Louis Navellier and Luke Lango – to answer those questions… and to consider what we all should be doing with our AI investments now. (You can find out more about AI Revolution Portfolio by going here.) 
You can watch the full discussion by clicking the play button above or click the button below to access the full transcript. Louis, Luke, and I built the AI Revolution Portfolio to represent the best-in-class stocks for the AI Boom… and to capture AI opportunities like this one. It’s where we focus on finding the AI stocks that could go on to disrupt entire industries and, as a result, go up more than any stock over the next 12 to 36 months. Our AI Revolution Portfolio returned more than 21% last year, and it continues to outperform the market this year.
Bottom line: We are firmly moving into the application layer of the AI Revolution. This is when companies that are applying AI technology within their own products and services, rather than producing the material needed to create AI, will dominate. These companies are overjoyed at the prospect of the sort of free (or at least affordable), open-source, user-friendly AI that DeepSeek and its innovations promise So, we are still very bullish on the AI opportunity here. In fact, the biggest investment opportunity of our lifetimes just got bigger. While this week’s market volatility is no fun, at the end of the day, our AI Revolution Portfolio companies are pumping out more profits than anyone else. So, I encourage you to take some time to learn more about our AI Revolution Portfolio here. Click Here To Learn More
Regards, | 
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