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The question looms—how will this lower reliance on advanced chips affect major industry players like TSMC, Nvidia, and ASML? While DeepSeek could spark an uptick in AI adoption among smaller companies that previously could not afford advanced chips, it also poses potential challenges. If the demand for high-end chips diminishes, it could lead to reduced revenue growth for these companies, which have experienced significant profitability through continued investment in advanced technologies. However, major players are still continuing capital expenditures; Microsoft, Google, Meta, and Amazon are each investing tens of billions in AI infrastructure, signaling that the race to dominate AI is far from over.