AI model routing: How Chinese models are taking over AI usage
Speakers
Deirdre Bosa
— Anchor/Reporter, CNBC Tech Check
Summary
CNBC's Deirdre Bosa reports on the rise of model routing, where companies direct easy AI tasks to cheaper models like Chinese open-source DeepSeek. This cost-cutting trend is creating AI sticker shock and could reshape the AI investment narrative from growth to pricing power, posing risks for NVIDIA.
- Model routing directs easy tasks to cheaper AI models to cut costs.
- Chinese open-source models like DeepSeek are gaining usage share.
- Anthropic's Claude is 19x more expensive than DeepSeek for similar workloads.
- AI spending is becoming more disciplined as companies face high bills.
- The AI trade may shift from pure growth to a pricing power story.
- Cognition, a startup focused on model routing, is valued at $26 billion.
- NVIDIA bulls may face headwinds from cheaper model adoption.
- The trend could reduce demand for expensive frontier AI hardware.
Ideas
Chinese models threaten NVIDIA demand.
Chinese open-source AI models like DeepSeek are gaining usage share through model routing, which allows companies to cut costs by routing easy tasks to cheaper models. This shifts AI spending discipline and reduces demand for expensive frontier models and the hardware that powers them, creating headwinds for NVIDIA.
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This CNBC video, published June 08, 2026, features Deirdre Bosa discussing NVDA. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Deirdre Bosa · Tickers: NVDA