GDS Holdings (GDS, Financial) experienced a 4.1% decline in pre-market trading, settling at $25. This follows a 20% increase over the previous two trading sessions. A recent report from Morgan Stanley highlights DeepSeek's new R1 model, which is open-source and potentially matches the performance of OpenAI's GPT-1. However, the training costs for R1 are significantly lower, at just one-thirtieth of GPT's training expenses.
The report also indicates that while Chinese data center operators face short-term uncertainties, their long-term prospects remain positive. The adoption of DeepSeek's technology could reduce the demand for AI model training, benefiting the demand for data centers in primary markets. This outlook favors GDS Holdings as a leading player in the sector.
