Forbes February 26, 2025
Last month’s news of DeepSeek’s incredible artificial intelligence performance led to the biggest market loss in history in late January, as Nvidia alone lost almost $600 billion in market capitalization on the news. For context, that is greater than the gross domestic product of Greece, Costa Rica, Luxembourg and Croatia. Combined.
Much remains to be seen regarding DeepSeek’s long term impact (and whether DeepSeek’s results quality as truly innovative under closer scrutiny). However, the issue is a stark reminder about the importance of durability, and not just growth or growth potential, to a company and its investors. Durability here refers to the concoction of business model, technology, products, and market position that make up business strategy, as well as how...