HOW DEEPSEEK WILL IMPACT THE DEMAND FOR DATA CENTRES AND FURTHER REVOLUTIONIZE THE REAL ESTATE INDUSTRY?

Roshy Chhillar, director, Landmark Group shares her views on the role of artificial intelligence and technology on the real estate sector.

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DeepSeek, a Chinese AI startup, has sent shockwaves through the tech world with its ChatGPT competitor, DeepSeek-R1. With share prices dropping significantly in companies involved in both the data centre supply chain and the energy sector, one can expect DeepSeek ripple effects on other IT enabled and non-IT enabled sectors.

Deepseek V1's strategic release right after President Trump's inauguration last week questions United States' AI leadership during a pivotal moment in U.S. as several people reacted to this new development with widespread uncertainty. However, one thing remains clear that the newly launched AI model is cost-effective.

This cost-effectiveness has raised questions about the sustainability of massive investments in AI infrastructure, including that for data centres and energy consumption.

WHAT EXACTLY HAS HAPPENED?

Deepseek V1 development has showcased reduced GPU requirements by 95%[1], enabling AI models to run on gaming GPUs. This challenges a company like Nvidia that dominates the AI infrastructure through its expensive data centre GPUs.