The entry of DeepSeek into the AI market has raised significant concerns about the future of costly data center investments in Southeast Asia, according to industry experts.

With the development of its free AI chatbot, DeepSeek has undercut major competitors like OpenAI and Google’s Gemini, questioning the viability of resource-intensive data center strategies in the region.

Following DeepSeek’s launch, US tech stocks, including Nvidia, saw declines.

Investors are worried that DeepSeek’s low-cost model could shift AI development trends and reduce the demand for data centers.

Adib Zalkapli of Viewfinder Global Affairs noted that while it’s too early to predict, the move has forced investors to reconsider their AI investments.

Recent DeepSeek developments