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There’s a big showdown unfolding in the tech world: DeepSeek versus OpenAI. You may recall that DeepSeek is a Chinese AI company that recently released a large-language model, “R1”. The company claims it took only two months to build and that it cost less than $6 million to train by using reduced-capacity NVIDIA Corporation (NVDA) chips. DeepSeek’s R1 model has been compared to OpenAI’s ChatGPT-4, which cost $100 million, with reports claiming it is just as good, if not better. Since DeepSeek seems to have accomplished this with less computing power (and less power consumption), this raised questions about the demand for more data centers and newer (and expensive) high-performance chips. Now, personally, I think there’s a lot we still don’t know about all of this. (You can read my initial thoughts on DeepSeek here.) But OpenAI CEO Sam Altman may have unknowingly presaged DeepSeek’s advancements, saying at an event at MIT in April 2023: I think we’re at the end of the era where it’s gonna be these giant models, and we’ll make them better in other ways. The point is, whether or not DeepSeek’s claims are true, the AI industry seems to be headed in a new direction – more efficient models rather than simply bigger ones. The implications of this are huge. With Super Bowl LIX tomorrow, let’s think about this in football terms…. For years, AI has been like an NFL team relying on a superstar quarterback (OpenAI). But DeepSeek may have just introduced a new playbook, one that spreads the AI advantage across the entire field, allowing smaller players to compete. In other words, if AI is getting cheaper and more efficient, then it’s not just for the Big Tech companies anymore. Soon, smaller companies will begin to adopt AI. You’ll also see AI adoption among “non-tech” industries at a massive scale, too. This is something I’ve been calling the AI Proliferation Boom. This is a really big deal, and it’s something you should be prepared for. That is why, in today’s Market 360, I’ll explain what the AI Proliferation Boomis. I’ll also explain how the news about DeepSeek could make this phase possible for other companies looking to incorporate AI into their business. And I will wrap things up by sharing how you can identify companies already embracing this trend, and position yourself to profit from it. | Recommended Link | | | | While AI is all the rage… I believe a new, cutting-edge technology will steal the headlines in 2025. And if you’re in before the crowd, it could mean a big winner for you. I’ve found one stock I think will benefit the most. It could be the #1 Tech Stock of 2025. |  | | How Technology Proliferates – and Leads to Profits... To explain what I mean when I refer to the AI Proliferation Boom, let’s take a little trip down memory lane. In the 1990s, transmitting data over the internet was very slow and expensive. (Remember dial-up internet?) Then, in the 2000s, fiber optic networks came into the picture as bandwidth needs were higher. This led to the internet becoming faster and less expensive. So, everyone was able to get the internet into their homes and businesses at a cheaper rate. It’s a story as old as time itself. As technology develops, innovators will find a way to produce products more efficiently and at a cheaper cost, making it more accessible and easier to use. In turn, demand dramatically increases. In the case of the internet, these developments led to the rise of juggernauts like Amazon.com, Inc. (AMZN), Alphabet, Inc. (GOOG) and Netflix, Inc. (NFLX) – businesses that didn’t create the internet but applied its infrastructure to build groundbreaking, scalable models. As you can guess, that’s when the real money was made. We could be at a similar moment for AI, folks. In the AI Proliferation Boom, businesses will use AI to completely reimagine how they operate – and, more importantly, how they grow. Now, in the case of DeepSeek, it claims to have found a way to make AI more efficient at a cheaper price. If their claims are true, then it means that more folks can build AI models, not less. (And even if DeepSeek’s claims are not, frankly, this moment is still coming around the corner…) Sooner than you think, more companies will be able to harness AI and turn it into tangible results – in the form of streamlined operations, soaring profit margins and competitive advantages that are leaving their peers in the dust. This will be a profound shift in the U.S. economy. Unlike the initial wave of hype surrounding AI, where the focus centered on companies building the technology, this phase is about how AI is being implemented across industries. In the AI Proliferation Boom, businesses will use AI to completely reimagine how they operate – and, more importantly, how they grow. Some large businesses will generate tens of billions of dollars in revenue through the work of just a few hundred people by leveraging AI. Other “legacy” businesses with a large headcount will begin employing AI – rather than humans – to achieve massive cost savings. In this new world, there will be two kinds of companies: those that master AI and employ fewer and fewer people while generating huge amounts of revenue and companies that go out of business. How to Profit From AI Proliferation The bottom line is DeepSeek may have paved the way to make it easier and cheaper for businesses to incorporate AI into their operations. We’ll know more in the days and weeks to come about DeepSeek – and how the rest of the tech community is responding. I predict the winners of the AI Proliferation Boom will likely deliver once-in-a-generation gains for early investors. So, you’ll want to invest in companies that are doing this already so you can be ahead of the game. Using my proprietary Stock Grader (subscription required), I compiled a list of 12 stocks that will accelerate as the AI Proliferation Boom gets underway. This report is available exclusively for my Growth Investor subscribers. The picks you’ll find in this report aren’t strictly tech-focused names. They aren’t designing high-end AI chips like NVIDIA… or creating sophisticated AI models like OpenAI. But what they are doing is applying AI to their businesses. Some of these companies are AI pioneers in their respective industries – and it’s making them FAR more profitable. Others are just beginning to apply AI to their business – but I expect they will drive innovation, profitability and growth in the years to come. Click here to learn more. (Already a Growth Investor subscriber? Click here to log in to the members-only website.) Sincerely, | 
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