AI Quick Pulse: Is Another DeepSeek Moment Ahead?

UBS analyzes whether recent low-cost Chinese AI models will disrupt the market, concluding that demand growth stimulated by lower costs (Jevons' Paradox) continues to support high infrastructure capex and GPU demand.

Key Takeaways

• 1.The cost of AI intelligence has been halving roughly every eight months due to algorithmic improvements.
• 2.Jevons' paradox is offsetting price declines; lower model costs are stimulating sufficient demand growth to support GPU demand and hyperscaler capex.
• 3.Contrary to initial fears, low-cost model releases like DeepSeek have catalyzed significant increases in capital expenditure among major hyperscalers like Alibaba.

Table of Contents

• AI quick pulse: Is another DeepSeek moment ahead?
• Our view
• Appendix
• Required Disclosures
• Analyst certification
• Company/Country Disclosures (13 February 2026)
• Contact
• Frequency of updates
• Producers, disseminators and their competent authorities
• Equity selection: An assessment relative to a benchmark
• Global asset class preferences definitions
• Statement of Risk
• Risk Information
• Instrument/issuer-specific investment research – Risk information
• Additional Disclaimer relevant to Credit Suisse Wealth Management

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial