Friday's Final Takeaways: China, U.S. AI Divergence as DeepSeek Releases New Model

Sam Vadas (0:01)

Welcome back to Market on Clothes. I am Sam Vadas at the New York Stock Exchange. So just some final thoughts on today's session, and really a reflection on the week. We did see a number of developments in the AI sector that appear to be pointing to diverging strategies between the US and China. Several high-profile tech leaders here in the US have now spoken out about the potential risks of the technology, but it felt like the national conversation, as I mentioned earlier, picked up in earnest this week. Anthropic researcher Jacob Cox's post this week caught a lot of attention when he accused labs of quote gambling with our lives, but he's not the only one. Greg Jensen over at Bridgewater also likening AI to the early days of COVID-19. AI labs themselves have been talking about slowing down the pace of things. OpenAI Sam Altman is now reportedly responding to some of these warnings. He said to be thinking about potentially tapping the brakes on the development of cutting edge AI, and is hoping others do the same. Now this so-called pacing trend and threats here in the US stand in contrast with what China is doing, which is developing things aggressively and accelerating the AI timeline. AI startup DeepSeek just came out with its new version 4.1 flash model, which is said to be requiring significantly less to high bandwidth memory. Moonshot AI is also reportedly targeting a massive jump in annual recurring revenue by the end of the year and that's according to Bloomberg, which is the company is shooting for $2 billion in annualized sales in 2026 thanks to the release of its Kimi K3 model, which is competitive on price compared to its US rivals.

But heading into next week, it's a big one for central banks as we mentioned, the FOMC is going to be the main attraction, the CPI today raising the odds of a hike at the next meeting. Current pricing is pointing to a roughly 85 percent chance of an increase in rates. The BOE is expected to sit on its hand. The BOJ is expected to hike at the end of the week. So watch dollar yen on the data front, export import prices, retail sales, a bunch of housing manufacturing data, big data dump out of China on Monday, economic activity indicators, home prices. Continuing to keep an eye on two key numbers, five percent on the 10-year, $100 oil and it's a quieter one for corporate earnings. A couple of notable names as KG mentioned, like Lennar on Wednesday.

So busy week, but that's going to do it for us here this week. For Market on Close, I'm Sam Vadas. Be sure to download the Schwab Network app available in the Apple App Store and tune in 24-7 on schwabnetwork.com. Have a great weekend. We'll catch you Monday.