Energy stocks are falling because AI Energy requires interrogation due to the new Chinese AI laboratory

Energy companies, which are most exposed to a boom from the technology sector data center, were immersed on early Monday, because the debut of the Chinese Open Source AI laboratory led investors to the question of how much the use of artificial energy intelligence will actually consume.

Vistur has dropped almost 30% ConstellationIN Speech energy AND GE Vernova They all fell by over 20%.

The constellation, Vitra and GE Vernova conducted the S&P 500 this year, because investors speculated that AI data centers would increase the demand for huge amounts of electricity. All three suffered when the market was pulled to below on Monday by investor worries about AI competition with China.

Deepseek released the artificial intelligence model at Christmas, which Alexandr Wang described the CEO scale in an interview with CNBC last week as “Sharatting Earth”. Scale AI provides training data for AI applications.

Deepseek continued last week with the release of the reasoning model called Deepseek-R1, which competes with the O1 OpenAI model. Since then, Deepseek has increased to the top of mobile applications stores. Wang said Deepseek basically caught up with OpenAI.

“Their model is actually the best performance or more or less equally with the best American models,” said Wang Andrew Sorkina from CNBC in an interview with January 23 at the World Economic Forum in Davos, Switzerland.

Microsoft CEO Satya nadella He described Deepseek as “Super-Compute Excert”. Bank of America analysts said in a Monday note that Deepseek “questions the concept of American leadership in artificial intelligence and raises doubts as to the high expectations of Cloud Capex, growth of chips and power requirements.”

Technology companies predict that they need such a large amount of electricity to provide data centers that they more and more often considered nuclear energy as a source of reliable energy without coal.

For example, the constellation has signed a power contract Microsoft To restart the Three Mile Island nuclear plant near Harrisburg, Pennsylvania. Talen is powered Amazon Electricity data center from the nearby Susquehanna nuclear power plant.

Vitra has not yet signed a contract with the data center, although investors see the promise of nuclear assets and natural gas. GE Vernova has increased this year because the market believes that its gas and electric activity will benefit from the demand for AI.

Bank of America analysts have found that investments in the US and Europe are still required.

“Electrical forces in Europe and the United States remain insufficiently invested, and one of the critical bottlenecks in terms of meeting the requirements for an increase in load,” the analysts said.