All Wall Street Analysts, Traders and Technology Guys caught Wind, the new Deepseek AI chatbot last weekend. (Even me – despite leaving town, owning to sick children and competing for work deadlines) What is it and why is it important?
Essentially, Chinese hedge funds have supported AI startups to create new AI chatbots that rival Openai’s ChatGpt, Meta’s Llama, and more. A small portion of the cost.
“Richard” means that Deepseek scores similarly on standardized quizzes and tests, like ChatGpt. The AI model takes these exams to explain understanding and intelligence.
The alleged $number paid by the company to train the model is $5 million worth of computing power, achieving the same results as the $170 million cost of training the latest ChatGPT update.
In the classic inverse “Buy Rumors,” the trader suddenly adjusted the mental model of the number of GPU chips actually needed to train the next Gen AI model. The company that sells all these GPUs quickly tanked on Monday.
Let’s forget how the model is trained to work. That’s not the point. The deepseek Chinese model is biased and distorted just like other trained models.
Chinese models have Chinese bias
The point is that everyone needs to determine how true the claim that AI models are constructed very cheaply. If it’s accurate, it’s a basic game changer for AI Bull Run. If it’s nonsense, this is a great thing to buy a dip moment.
I feel so good it’s not true
The timing of Deepshek’s announcement is a bit off the point where President Trump came almost immediately after he announced his $500 billion data center building out and chip manufacturing plan.
Stargate supports building large hardware for better AI models that Silicon Valley claims to be necessary to maintain its industry advantage.
However, with the deepseek build method, all that investment will be a waste of money, Silicon Valley’s “specialist knowledge” is
Overall, it takes time to sort out the truth and what’s missing in the new Deepseek revelation. My guess is that what appears to be too good is not true. Usually that’s the case, and sometimes it’s not yet in the story.
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