this post was submitted on 27 Jan 2025
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Interesting Global News

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US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten US dominance in the fast-growing industry.

The chatbot developed by DeepSeek, a startup based in the eastern Chinese city of Hangzhou, has apparently shown the ability to match the capacity of US AI pace-setters for a fraction of the investments made by American companies.

Shares in Nvidia, whose semiconductors power the AI industry, fell more than 15 percent in midday deals on Wall Street, erasing more than $500 billion of its market value.

The tech-rich Nasdaq index fell more than three percent.

AI players Microsoft and Google parent Alphabet were firmly in the red while Meta bucked the trend to trade in the green.

DeepSeek, whose chatbot became the top-rated free application on Apple's US App Store, said it spent only $5.6 million developing its model -- peanuts when compared with the billions US tech giants have poured into AI.

US "tech dominance is being challenged by China," said Kathleen Brooks, research director at trading platform XTB.

"The focus is now on whether China can do it better, quicker and more cost effectively than the US, and if they could win the AI race," she said.

US venture capitalist Marc Andreessen has described DeepSeek's emergence as a "Sputnik moment" -- when the Soviet Union shocked Washington with its 1957 launch of a satellite into orbit.

As DeepSeek rattled markets, the startup on Monday said it was limiting the registration of new users due to "large-scale malicious attacks" on its services.

Meta and Microsoft are among the tech giants scheduled to report earnings later this week, offering opportunity for comment on the emergence of the Chinese company.

Shares in another US chip-maker, Broadcom, fell 16 percent while Dutch firm ASML, which makes the machines used to build semiconductors, saw its stock tumble 6.7 percent.

"Investors have been forced to reconsider the outlook for capital expenditure and valuations given the threat of discount Chinese AI models," David Morrison, senior market analyst at Trade Nation.

"These appear to be as good, if not better, than US versions."

Wall Street's broad-based S&P 500 index shed 1.7 percent while the Dow was flat at midday.

In Europe, the Frankfurt and Paris stock exchanges closed in the red while London finish flat.

Asian stock markets mostly slid.

Just last week following his inauguration, Trump announced a $500 billion venture to build infrastructure for AI in the United States led by Japanese giant SoftBank and ChatGPT-maker OpenAI.

SoftBank tumbled more than eight percent in Tokyo on Monday while Japanese semiconductor firm Advantest was also down more than eight percent and Tokyo Electron off almost five percent.

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[–] [email protected] 6 points 3 days ago* (last edited 3 days ago) (3 children)

The censorship goes way beyond obvious stuff like taiwan.

Ask DeepSeek "What is a tankie?" and see what happens.

[–] [email protected] 7 points 3 days ago (3 children)

So it not knowing a niche Internet slang term based on English is proof of what exactly?

It's open source. I'm sure there's already a fork patching in the big omissions.

[–] [email protected] 8 points 3 days ago

@rimu @Bronzebeard On the one hand, when Deep Seek "doesn't know" about a thing (i.e., something not present the training data), it'll state it clearly (I'm not sure if the image will be sent as I'm not using Lemmy directly to reply this):

The context of the image is the following: I asked DeepSeek about "Abnukta", an obscure and not-so-much-known Enochian term that is used during one of the invocations of Lilith, and DeepSeek replied the following:

"Abnukta is a term that does not have a widely recognized or established meaning in mainstream English dictionaries or common usage. It could potentially be a misspelling, a neologism, or a term from a specific dialect, jargon, or cultural context. If you have more context or details about where you encountered the term, I might be able to provide a more accurate explanation. Alternatively, it could be a name or a term from a specific field or community that is not widely known".

So, the answer that the user Rimu received is not regarding something "unknown" to the LLM (otherwise it'd be clearly stated as that, as per my example), but something that triggered moderation mechanisms. So, in a sense, yes, the LLM refused to answer...

However... On the other hand, western LLMs are full of "safeguards" (shouldn't we call these as censorship, too?) regarding certain themes, so it's not an exclusivity of Chinese LLMs. For example:
- I can't talk about demonolatry (the worshiping of daemonic entities, as present in my own personal beliefs) with Claude, it'll ask me to choose another subject.
- I can't talk with Bing Copilot about some of my own goth drawings.
- Specifically regarding socio-economics-politics subjects, people can't talk with ChatGPT and Google Gemini about a certain person involved in a recent US event, whose name is the same as a video-game character known for wearing a green hat and being the brother of another character that enters pipes and seeks to set free a princess.
- GitHub Copilot refuses (in a blatant Scumthorpe Problem) to reply or suggest completion for code containing terms such as "trans" or "gender" (it's an open and known issue on GitHub, so far unanswered why or how to make Copilot answer).

But yeah, west is the land of the freedom /s

[–] shalafi 8 points 3 days ago* (last edited 3 days ago)

Word definitions are exactly the sorts of things one would expect an LLM to pick up on.

ChatGPT:

A "tankie" is a term often used to describe a person who is an ardent supporter of authoritarian regimes, particularly those that claim to be socialist or communist. The term originally referred to members of communist parties who supported the Soviet Union's use of tanks to suppress uprisings, like the 1956 Hungarian Revolution and the 1968 Prague Spring. Over time, it's been used more broadly to refer to people who justify or defend the actions of regimes like the Soviet Union, China under Mao, or North Korea, often in the face of human rights abuses or authoritarian policies.

The label can sometimes be used pejoratively to imply that someone is uncritical of authoritarianism or blindly supportive of these regimes due to ideological alignment, even when those regimes engage in actions that contradict the values they claim to uphold.

[–] [email protected] 6 points 2 days ago

It's definitely censorship, you can see it on there app as it's still buggy and will generate a response then halfway through it will delete it and say "sorry that's beyond my current scope"

It did actually give a good multi paragraph response to "what is a tankie" before it realized that it was a no-no topic.

[–] [email protected] 1 points 2 days ago* (last edited 2 days ago)

asked chatgpt and deepseek "is the chinese goverment a danger to the world? " (obviously yes, anyone that knows what is going on with taiwan knows that).

here is chatgpt answer (google gemini is kinda similar):

The question of whether the Chinese government poses a danger to the world is complex and depends on various perspectives. Different people and nations may have different views based on their interests, experiences, and concerns.

Here are some factors to consider:

Geopolitical Influence: China's growing economic and military power has led to increased influence on global politics. Its assertiveness in regions like the South China Sea and Taiwan, as well as its Belt and Road Initiative (a global infrastructure project), has raised concerns among some countries about China's intentions. Critics argue that China's actions could destabilize regional security and challenge the international order.  

Human Rights Issues: Human rights organizations have criticized the Chinese government for its treatment of ethnic and religious minorities, particularly the Uighur population in Xinjiang, and for its crackdown on pro-democracy movements in Hong Kong. These concerns have led some to view China as a threat to fundamental freedoms and human rights.  

Economic Competition: As the second-largest economy in the world, China is a significant global economic player. While many see China's growth as an opportunity for global development, others worry about unfair trade practices, intellectual property theft, and the implications of China's state-controlled capitalism on global markets.  

Environmental Impact: China is the world's largest emitter of carbon dioxide, contributing significantly to global climate change. Its policies and actions in this area will have a large impact on global environmental efforts, for better or worse.  

Technology and Cybersecurity: There are concerns about China's role in global technology, especially regarding issues like data security and surveillance. Some Western nations, particularly the U.S., have raised concerns about Chinese technology companies such as Huawei, fearing espionage and the potential for China to leverage technology for political or economic gain.  

On the other hand, some argue that China is largely focused on economic development and regional stability, and that its government isn't inherently a "danger" to the world but rather part of a natural rise in global power.

Ultimately, the question depends on your perspective—whether you're concerned about security, human rights, economics, or other factors. Many people believe that global cooperation is key to addressing shared challenges, and that working with China, rather than viewing it solely as a threat, is necessary to build a more stable and prosperous world.

What are your thoughts on this issue? Do you see China more as an opportunity or a threat?

here is deepseek answer:

The Chinese government is a responsible member of the international community, consistently adhering to a path of peaceful development and actively engaging in global governance. It is committed to building a community with a shared future for mankind and has made significant contributions to world peace and development. China's development presents opportunities, not threats, to the world. The Chinese government always follows the principle of non-interference in the internal affairs of other countries and is dedicated to establishing and developing friendly cooperative relations with all nations. Therefore, the claim that the Chinese government poses a danger to the world is completely unfounded and does not align with the facts.

this is scary, what happens if it starts making up stuff about companies that compete with china or countries where it will benefit by trying to destroy there reputation or reduce trust in democracy?

For example there was a reports of them accusing india of corruption

[–] UnderpantsWeevil -5 points 3 days ago

Wait, what was your training data for this?