The recent plunge in AI stocks may be just the beginning of a seismic shift in the industry …

The stock crash is just a symptom of a deeper shift—one where the West’s control on AI is slipping, and a new era of open, affordable, and widely available AI is taking shape. 

The future now  belongs to those who embrace this change, not those who resist it.

The US has a huge decision to make … Either continue down the path of controlled access and exorbitant pricing, or adapt to a world where AI is no longer a privilege of the few but a tool for the many. 

Today, we will step back and look at the major ramifications this abrupt change will have on a world that was already in transition from free trade to every-man-for-himself.

For years, the U.S. has attempted to stifle China’s technological rise through sanctions, chip embargoes, and even political interventions, such as the arrest of a Huawei executive. 

Yet, all these efforts have not only failed but have arguably accelerated China’s innovation, leading to the creation of a cutting-edge AI model that challenges US led, Western dominance.

DeepSeek AI represents a profound departure from the Western approach to artificial intelligence. 

While companies like OpenAI and Google focus on proprietary, closed-source models that consolidate power in the hands of a few, China has taken a radically different approach: openness, accessibility, and affordability. 

DeepSeek is not just a technical sensation; it is a rational statement about the future of AI.

DeepSeek is being developed as an open-source platform, enabling widespread access and modification.

A Paradigm Shift with Massive Implications. 

AI is not just another industry—it is the backbone of future technological and economic power. 

By making AI widely available at a fraction of the cost, China is positioning itself as the leader of the next digital revolution. The implications extend beyond technology and economics …

They accelerate the change in the new world order that Power Income introduced a couple of years ago. 

Dr. Bertrand Renaud, an international consultant who specializes in financial development has this to say about an open-source code AI world:

“Ironically named ‘OpenAI’ is basically about trying to establish a monopoly by creating a moat with massive amounts of GPU and money. DeepSeek is clearly betting on a future where AI becomes a commodity, widely available and affordable to everyone. By pricing so aggressively and releasing their code open-source, they’re not just competing with OpenAI but basically declaring that AI should be like electricity or internet connectivity – a basic utility that powers innovation rather than a premium service controlled by a few players.”

Let’s face it, the current AI market in the West introduced more of the same …  corporate greed: a few powerful entities with a goal of achieving maximum profit with control over access and innovation.

This system benefits investors and executives but ultimately stifles progress and limits AI’s potential to improve lives on a global scale. In contrast, China’s model prioritizes accessibility and utility over profit, making AI an engine for widespread innovation rather than a tool of economic and political control.

The implications of this shift are already being felt. The AI stock crash reflects a growing realization that monopolistic business models may not be sustainable in the long run. 

If AI is destined to become as essential as electricity or the internet, then an open and competitive environment will naturally outpace closed ecosystems driven by financial motives.

China’s move to provide cutting-edge AI at dramatically lower costs disrupts the Western monopoly on AI research and commercialization, forcing a reckoning within the industry.

Implications for the Markets

In the short-run peace in Ukraine and Trump’s infatuation with a strong stock market and a bit more fuel for markets i.e. the Treasury General Account and more behind-the-scenes, at the Fed, liquidity may fuel higher asset prices …

However, a larger market crash is coming later in the year driven by a lack of liquidity and the wider spread realization that the party in equities is over. 

Investors should certainly reallocate a large portion of their portfolio out of US AI stocks on any bounce …

As well as shifting out of consumer-led equity positions into bonds, gold and cash and wait for what will be a much better opportunity to get in at “fairly-valued” prices down the road. 

Live and Trade With Passion My Friends,

Bill Griffo