US AI industry

[Returning_Indian]

China released deepseek and it has thrown US AI industry into chaos. Nvidia has declined sharply and so have other companies. Based on China's model it appears you do not need billions of dollars to develop models. Recently announced stargate with funds upto 500B looks like waste now. China developed chatgpt for less than 10million USD and released it for free/open-source. Every startup's board room will have an emergency meeting now to discuss these low cost models should be used and cut funding drastically. Does it mean all the fancy AI jobs that were going to show up will disappear now? Only guys will superior technical knowledge will take in big bucks while machine does the rest.

Based on some technical discussions it appears they have used novel algorithms to make such advancements which was considered not possible by silicon valley. Ofcourse Elon would be very happy today. He has been advocating open source for very long time while openai had closed doors. It certainly looks like many people/companies will be dropping their subscription of openai. Certainly a big blow to investors who were hoping to cash in their investments soon. This AI race has suddenly changed and shifted towards China.

I remember Altman's comment that India cannot build its own model. That tone of contempt I suppose came from lack of vision and funds from Indian tech. Now it appears money is not what you need. You need brains. This development and innovation by China will certainly boost small techs around the world to new possibilities.

[r2somewhere]

China released deepseek and it has thrown US AI industry into chaos. Nvidia has declined sharply and so have other companies. Based on China's model it appears you do not need billions of dollars to develop models. Recently announced stargate with funds upto 500B looks like waste now. China developed chatgpt for less than 10million USD and released it for free/open-source. Every startup's board room will have an emergency meeting now to discuss these low cost models should be used and cut funding drastically. Does it mean all the fancy AI jobs that were going to show up will disappear now? Only guys will superior technical knowledge will take in big bucks while machine does the rest.

Based on some technical discussions it appears they have used novel algorithms to make such advancements which was considered not possible by silicon valley. Ofcourse Elon would be very happy today. He has been advocating open source for very long time while openai had closed doors. It certainly looks like many people/companies will be dropping their subscription of openai. Certainly a big blow to investors who were hoping to cash in their investments soon. This AI race has suddenly changed and shifted towards China.

I remember Altman's comment that India cannot build its own model. That tone of contempt I suppose came from lack of vision and funds from Indian tech. Now it appears money is not what you need. You need brains. This development and innovation by China will certainly boost small techs around the world to new possibilities.

Well, Altman isnt wrong. India has not build its own model. China has though. I read Peter Thiel's (he is Elon's mentor) book on startups. He too, holds the same view. He says that Asians in general never break new ground. At most they iterate and improve upon breakthroughs made by westerners. This is because Asian cultures are fundamentally risk averse. They wont put any effort into endeavors unless its proven first.

Deepseek has improved upon OpenAI's breakthrough. This has saved everyone billions of dollars and many years. This is bad news for white collar jobs and bad news for offshoring. Not sure the AI race has shifted to China. Unless they have held back something much better and open sourced an inferior version of what they made.

[mcr]

Deepsake developers showed it is possible to do what ChatGPT, Gemini and other bots does using far fewer computing resources. While ChatGPT uses 16,000 latest version GPUs from Nvidia, Deepsake could train their bot using 2000 GPUs and that too less powerful older version ones. This will force OpenAI, MS, Google etc. to optimize and make their code more efficient to be able to do more with less resources which is a good thing overall in terms of AI innovations. This was bound to happen, someone would have found a better way to do things. The infra companies are more affected by this because AI will need less of those resources if what Deepseek has done is replicated by all AI companies. I saw some electric company stocks fell by almost 30%! People had bought those stocks like crazy as they thought we need humongous amount of electricity to run those giant AI machines!

[Returning_Indian]

Biggest victim of this AI race will be severe dilution of regulations and ethics. With new president regulations will take a back seat. Moreover, smaller players can also compete now in this space which will only make it tougher to implement any regulations. I certainly hope India's ecosystem picks this up and runs with it.

[RBee]

Yesterday was a knee jerk reaction (Hedge funds created this to sell and book profit I think). It is a wake up call for sure for US researchers/developers to innovate more with focus on cost effective measures but the research that has already accomplished cannot be wiped away so easily.

China has invested more than trillion dollars on AI and continues to do so.

US Stargate project has commitment of 500 billion from major players. It will beef up the energy infrastructure as well as the new data centers in places like Abilene Texas which will see some investment dollars flow in.

Knowing how forthcoming China has been in data privacy issues, I will be very skeptical to install DeepSeek on devices that contain private info (App itself might look harmless but the platform is not).

[wd40]

Indians hate China
Americans hate China
Indian Americans double hate China

[SAPPORO]

Easy-peasy - Buy it/them up for a few hundreds of million dollars and crush the competition.