By Laila Kearney and Liz Hampton
New York/Houston (Reuters)-shares of US Power, Utility and Natural Gas Companies are sold out on Monday in some of the largest registered one-day drops, as new AI technology of the Chinese start-up Deepseek perhaps doubt about an expected wave in the Ask for electricity from American electricity and technical editions.
Last year, power producers were one of the biggest winners in the S&P 500 about expectations of balloon demand from the Energie-Guzzling data centers needed to scale Big Tech’s artificial intelligence technologies.
The wider acceptance of AI models as developed by Deepseek, which says it is built in less than two months and is cheaper than models currently used by American companies, can result in less the demand for electricity in general and result in a smaller power structure, analysts and economists said.
“If it is proven, the efficiency used in the open-source model of Deepseek can be applied to their models by the hyperscalers, which would lead to a more moderated question,” said analysts with Evercore Isi in a note.
BIG -Technology companies, which are also known as developers of Hyperscaling Datacenter, have dedicated dozens of billions of dollars to the development of AI Datacenter in the past year.
In the US, data centers used about 4.4% of the electricity in 2023, but would be expected to use 6.7% to 12% of all current by 2028, according to a report produced by the Lawrence Berkeley National Laboratory.
Independent power provider Constellation Energy, whose shares had risen around 100% in 2024, largely at his ability to sell nuclear and gas -fired power to American data centers, with about 20% sunk in trade on Monday after news about the progress of Deepseek.
Vistra fell by 30% and rival Talen Energy Corp fell by 22%.
Deepseek AI could also threaten the dominance of the current AI leaders, which are located in Silicon Valley and delay their deployment of data centers. The AI assistance from Deepseek had overtaken our rival chatgpt in downloads from Apple’s App Store on Monday.
But with the wider acceptance of AI, even with more energy-efficient models, the power demand could increase everywhere, said Ed Hirs, an energy economist at the University of Houston. He warned that a sale of power supplies could be short -sighted and short -lived.
“In this case, if Deepseek turns out to be what everyone wants, and they sell to American companies, and the American companies change their algorithms to accept it, this simply means a larger, faster wider development,” Hirs said.
Nevertheless, electricity companies and even producers of raw materials with regard to power generation were under pressure.