China's Deep Seek R1 AI Disrupts American Market: Unveiling the True Innovation
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In this riveting episode of AI Uncovered, China has thrown down the gauntlet with their deep seek R1, a formidable AI tool challenging the dominance of American AI. The $6 million model sent shockwaves through the industry, causing a staggering $1 trillion wipeout in the US Stock Market. Giants like meta, Oracle, and Alphabet felt the sting, but it was India that bore the brunt with a historic $600 billion loss, surpassing even the 2008 financial crash. How did this David-and-Goliath showdown unfold? China, under strict US sanctions, managed to train an AI model that rivals the best in the US, raising questions about their methods and resources.
The $6 million myth surrounding deep seek R1 has been debunked, revealing that AI training costs are not just about a single number but encompass various factors like compute resources and infrastructure. While the model's cost efficiency seemed groundbreaking, it aligns with industry trends, with large-scale AI development still reliant on massive infrastructure investments. The real story lies in deep seek's substantial investment, with reports suggesting access to 50,000 Nvidia Hopper GPUs worth close to $1 billion, putting them on par with major US AI labs. Despite the hype around R1, the true innovation came earlier with deep seek V3, boasting efficiency improvements that set it apart from the competition.
Deep seek's V3, not R1, was the game-changer, introducing advancements like advanced key value cache management and mixture of experts Moe optimization. While R1 added reinforcement learning, it was more of an incremental upgrade than a revolutionary breakthrough. The temporary era of cost parity in AI development, where multiple companies can train powerful models, is a fleeting moment. As AI scaling progresses, the advantage will shift back to those with the deepest pockets and the most extensive compute clusters. Deep seek's impact, while significant, is a mere blip in the ongoing arms race of AI development, where access to resources and sustained investment will continue to dictate success in the long run.
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Image copyright Youtube
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DeepSeek's free and open-source model is causing less demand for Nvidia's high-end GPUs
Discussion on the efficiency and impact of DeepSeek being open source
Comparison between American and Chinese AI advancements
Speculation on the costs and impact of DeepSeek
Mention of Moonacy protocol and Janus-Pro in relation to AI breakthroughs
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Criticism of Western reliance on expensive technology compared to Chinese efficiency
Concerns about potential bans or psyops on DeepSeek
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