Amazon (AMZN) is now offering access to DeepSeek’s low-cost, open-source artificial intelligence training models, among other models from various providers, such as Anthropic and Meta (META). This development comes as Chinese startup DeepSeek challenges U.S. companies like Microsoft-backed OpenAI (MSFT) and Anthropic, as well as tech giants like Google (GOOGL) and Meta. DeepSeek disrupted the AI market after it was revealed that its AI model cost significantly less to develop than those of OpenAI and Anthropic.
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In fact, the AI trend has so far been driven by large language models that require massive amounts of data to be trained. However, open-source models have advanced rapidly by allowing developers to reuse and build upon them. This has led to falling prices that have commoditized AI models, with JPMorgan analyst Gokul Hariharan noting that the significant cost differences in training AI models bring into question the necessity of large-scale GPU investment.
As a result, a rivalry is now developing between DeepSeek and Meta, which is currently the leader in open-source AI models. Indeed, Meta’s CEO, Mark Zuckerberg, emphasized that it is important to have an American standard for open-source AI in order to have a national advantage.
Is Amazon Stock Expected to Rise?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 47 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average AMZN price target of $256.86 per share implies 7.1% upside potential.
