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Good. LLM AIs are overhyped, overused garbage. If China putting one out is what it takes to hack the legs out from under its proliferation, then I'll take it.
Cutting the cost by 97% will do the opposite of hampering proliferation.
It's not about hampering proliferation, it's about breaking the hype bubble. Some of the western AI companies have been pitching to have hundreds of billions in federal dollars devoted to investing in new giant AI models and the gigawatts of power needed to run them. They've been pitching a Manhattan Project scale infrastructure build out to facilitate AI, all in the name of national security.
You can only justify that kind of federal intervention if it's clear there's no other way. And this story here shows that the existing AI models aren't operating anywhere near where they could be in terms of efficiency. Before we pour hundreds of billions into giant data center and energy generation, it would behoove us to first extract all the gains we can from increased model efficiency. The big players like OpenAI haven't even been pushing efficiency hard. They've just been vacuuming up ever greater amounts of money to solve the problem the big and stupid way - just build really huge data centers running big inefficient models.
Possibly, but in my view, this will simply accelerate our progress towards the "bust" part of the existing boom-bust cycle that we've come to expect with new technologies.
They show up, get overhyped, loads of money is invested, eventually the cost craters and the availability becomes widespread, suddenly it doesn't look new and shiny to investors since everyone can use it for extremely cheap, so the overvalued companies lose that valuation, the companies using it solely for pleasing investors drop it since it's no longer useful, and primarily just the implementations that actually improved the products stick around due to user pressure rather than investor pressure.
Obviously this isn't a perfect description of how everything in the work will always play out in every circumstance every time, but I hope it gets the general point across.
What DeepSeek has done is to eliminate the threat of "exclusive" AI tools - ones that only a handful of mega-corps can dictate terms of use for.
Now you can have a Wikipedia-style AI (or a Wookiepedia AI, for that matter) that's divorced from the C-levels looking to monopolize sectors of the service economy.
It’s been known for months that they were living on borrowed time: Google “We Have No Moat, And Neither Does OpenAI” Leaked Internal Google Document Claims Open Source AI Will Outcompete Google and OpenAI
Wait. You mean every major tech company going all-in on "AI" was a bad idea. I, for one, am shocked at this revelation.
The funny thing is, this was unveiled a while ago and I guess investors only just noticed it.
As a European, gotta say I trust China's intentions more than the US' right now.
Not really a question of national intentions. This is just a piece of technology open-sourced by a private tech company working overseas. If a Chinese company releases a better mousetrap, there's no reason to evaluate it based on the politics of the host nation.
Throwing a wrench in the American proposal to build out $500B in tech centers is just collateral damage created by a bad American software schema. If the Americans had invested more time in software engineers and less in raw data-center horsepower, they might have come up with this on their own years earlier.
Idiotic market reaction. Buy the dip, if that's your thing? But this is all disgusting, day trading and chasing news like fucking vultures
Yep. It's obviously a bubble, but one that won't pop from just this, the motive is replacing millions of employees with automation, and the bubble will pop when it's clear that won't happen, or when the technology is mature enough that we stop expecting rapid improvement in capabilities.
"wiped"? There was money and it ceased to exist?
The money went back into the hands of all the people and money managers who sold their stocks today.
Edit: I expected a bloodbath in the markets with the rhetoric in this article, but the NASDAQ only lost 3% and the DJIA was positive today...
Nvidia was significantly over-valued and was due for this. I think most people who are paying attention knew that
I am extremely ignorant of all this AI thing. So please can somebody "Explain Like I'm 5" why can this new thing can wipe off over a trillion dollars in US stock ? I would appreciate it a lot if you can help.
Hilarious that this happens the week of the 5090 release, too. Wonder if it'll affect things there.