The Dutch semiconductor equipment manufacturer ASML expects an even greater increase in demand for AI chips due to the introduction of the R1 model from DeepSeek. This was reported by CNBC.
ASML investors are concerned that the emergence of cheaper artificial intelligence models could lead to a decline in demand for semiconductors. This, in turn, could hit the demand for ASML's high-precision photolithography machines used to make chips.
Nevertheless, the company reassures investors and says that it sees no signs of a slowdown in demand for AI chips.
"A lower cost of AI could mean more applications. More applications means more demand over time. We see that as an opportunity for more chips demand," ASML CEO Christophe Fouquet.
The high-profile debut of the DeepSeek model caused a sharp drop in tech stocks amid fears of a possible reduction in the cost of powerful GPUs needed to train and run AI workloads.
Nevertheless, Fouquet believes that lower tuition costs will allow for even more investment in R&D. In addition, it will open the way for companies that do not have the wealth of Microsoft, Google, or OpenAI.
"For AI to really come to life in the next few years — not only with the hyperscalers, but with all of us in our phone, PC — we need AI to address two things: cost and energy consumption," Christophe Fouquet.
The success of DeepSeek has raised questions about the costs of leading AI players such as OpenAI and Microsoft for NVIDIA GPUs, which are needed to train and run state-of-the-art AI models.
However, analysts claim that DeepSeek spent much more money on model training than it claims. OpenAI also has questions to the Chinese artificial intelligence laboratory, claiming that DeepSeek illegally used its models.
ASML, a Dutch holding company, is the world's largest manufacturer of photolithography equipment for the production of semiconductors, controlling more than 67% of global sales of photolithography machines and is among the Top 10 largest semiconductor companies in the world.