Schneider Electric Acknowledges China’s DeepSeek Moment as a Positive Development in AI
Schneider Electric’s chairman, Jean-Pascal Tricoire, underscores the relevance of China’s “DeepSeek moment” for AI advancements. He highlights that smaller, efficient AI models can enhance enterprise operations. Despite stock fluctuations, Schneider Electric reported record profits in 2024, attributing part of its success to the growing demand for AI-driven data centers.
Schneider Electric, a leading French industrial company, emphasizes the importance of China’s so-called “DeepSeek moment” in advancing artificial intelligence (AI) capabilities. Jean-Pascal Tricoire, the company’s chairman, remarked that the development of AI models that can efficiently perform complex tasks is essential across various levels of businesses. At the CONVERGE LIVE event in Singapore, Tricoire stated, “We need AI at every level” to enhance decision-making and operational efficiency.
Tricoire praised the Chinese AI application DeepSeek for demonstrating that smaller AI models could match the performance of more established American counterparts. He noted, “It will actually spread AI at all levels of the architecture much faster.” Tricoire believes that DeepSeek’s new R1 model holds great potential for enhancing safety and reliability in managing hazardous equipment, showcasing a positive direction for AI development.
His perspective comes on the heels of Schneider Electric’s announcement of record sales and profits in 2024, largely attributed to the AI trend. The heightened demand for data centers led the company to increase its projected profit margins for 2025. In terms of stock performance, shares of Schneider Electric surged 33% in 2024, following a previous 39% increase in 2023. However, the stock has seen approximately a 7% decline year-to-date due to apprehensions regarding AI investments.
Data centers, crucial for cloud computing and AI applications, are significant energy consumers and represent an integral aspect of modern infrastructure. The developments in AI technology highlight both opportunities and challenges for players in the technology sector.
In summary, Schneider Electric’s Jean-Pascal Tricoire highlights the advantages of China’s DeepSeek moment for the evolution and application of AI models. This shift is positioned to enhance efficiency across enterprises while contributing to Schneider Electric’s recent success in the market. Despite fluctuations in the stock price, the company’s positive outlook toward AI and data center demand reflects the transformative potential of AI technology in the industrial sector.
Original Source: www.cnbc.com
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