KDA Capabilities’ Post

AI's '#Sputnik' moment or #JevonsParadox? Either way, #DeepSeek's #R1 is a game changer in the #AI evolution. If the claims are true, and there is no reason not to believe they are true, 'AI the Disruptor' is all is set to be disrupted by an hitherto unknown startup. Forced to use nVIDEA's cheaper #H800 #GPUs due to restrictions on China, DeepSeek got innovative in frugal engineering and achieved what #OpenAI and #Google #Gemini accomplished with billions of dollars with just $5.6M, debunking the conventional wisdom of expensive and energy-hungry AI. It doesn't necessarily mean that US' domination of AI is ending, but it does mean that everyone needs to recalibrate. Exciting times! What are your thoughts on impact of DeepSeek's R1 on the evolution of AI?

What is DeepSeek, the Chinese AI company upending the stock market? A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over competition between the U.S. and China in developing AI technology. Read more. Why this matters: Part of what’s worrying U.S. tech industry observers is that the Chinese startup may have caught up with the American companies at a fraction of the cost. That, if true, calls into question the huge amounts of money U.S. tech companies say they plan to spend on the data centers and computer chips needed to power further AI advancements. https://lnkd.in/gpsAX_qc

Chinese AI startup DeepSeek is making waves with its newest language model, now ranked as the #1 free app on the U.S. iOS App Store. This milestone signifies a major step in China’s push to compete with U.S.-led AI innovation, sparking discussions on the evolving global AI landscape. Notably, the rise of DeepSeek has also influenced tech stocks, including Nvidia, as the company’s dominance in the AI chip market becomes even more pivotal. As global competition intensifies, this could mark a shift in the balance of AI power—challenging established leaders and driving advancements worldwide. 

What is DeepSeek, Chinese AI company upending the stock market? “The technology innovation is real, but the timing of the release is political in nature,” said Gregory Allen, dir of the Wadhwani AI Center at the Center for Strategic & International Studies https://lnkd.in/gUmHTBkZ

America-China AI Cold War: China's "DeepSeek" Firing the First Salvo Across the Bows of Open AI and DeepMind This is a story that was published in Financial Times. I urge everyone to pay close, close attention to this Chinese AI firm that has in a cloak-and-dagger manner risen like a phoenix to threaten the AI supremacy of companies, such as Open AI and Google's Deep Mind. Why? For four fundamental reasons: 1. Cost. DeepSeek trained its models at a fraction of the cost of Open AI's. 2. Cheap Homegrown Talent. The talent and the technology is entirely China homegrown 3. Open Source. The technology is open-source 4. "Second" Mover Advantage. DeepSeek waited for Open AI and then came with its equally powerful model, though much, much cheaper ($6 million versus OpenAI's $billions). I am beginning to think that the Chinese as in the Japanese before them (Automotive) learned to compete with America at a fraction of the cost and then open their AIs floodgates to the world, the same way Toyota and then the Chinese EV manufacturers captured marketshare. In a way, the Chinese are trying to "socialize" and "democratize" AI, which will render American AI firms' billions of expenditures as "Sunk Costs"! Take note. Truly astonishing. #OpenAI #DeepSeekAI #Microsoft #Google #DeepMind #SiliconValley #Amazon #ElonMusk

What is DeepSeek, the Chinese AI company upending the stock market? by via apnews.com URL: https://ift.tt/inv3gyr Broadcast message: A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over the economic and geopolitical competition between the U.S. and China in developing AI technology. DeepSeek’s AI assistant became the No. 1 downloaded free app on Apple’s iPhone store Monday, propelled by curiosity about the ChatGPT competitor. Part of what’s worrying some U.S. tech industry observers is the idea that the Chinese startup has caught up with the American companies at the forefront of generative AI at a fraction of the cost. That, if true, calls into question the huge amounts of money U.S. tech companies say they plan to spend on the data centers and computer chips needed to power further AI advancements. US President Donald Trump on Monday praised DeepSeek AI, the artificial intelligence chatbot made by a Chinese start-up. A frenzy over DeepSeek AI has upended stock markets and is fueling debates over the economic and geopolitical competition between the U.S. and China in developing AI technology. But hype and misconceptions about DeepSeek’s technological advancements also sowed confusion. “The models they built are fantastic, but they aren’t miracles either,” said Bernstein analyst Stacy Rasgon, who follows the semiconductor industry and was one of several stock analysts describing Wall Street’s reaction as overblown. “They’re not using any innovations that are unknown or secret or anything like that,” Rasgon said. “These are things that everybody’s experimenting with.” What is DeepSeek? The startup DeepSeek was founded in 2023 in Hangzhou, China and released its first AI large language model later that year. Its CEO Liang Wenfeng previously co-founded one of China’s top hedge funds, High-Flyer, which focuses on AI-driven quantitative trading. The fund, by 2022, had amassed a cluster of 10,000 of California-based Nvidia’s high-performance A100 graphics processor chips that are used to build and run AI systems, according to a post that summer on Chinese social media platform WeChat. The U.S. soon after restricted sales of those chips to China. DeepSeek has said its recent models were built with Nvidia’s lower-performing H800 chips, which are not banned in China, sending a message that the fanciest hardware might not be needed for cutting-edge AI research. DeepSeek began attracting more attention in the AI industry last month when it released a new AI model that it boasted was on par with similar models from U.S. companies such as ChatGPT maker OpenAI, and was more cost-effective in its use of expensive Nvidia chips to train the system on troves of data. The chatbot became more widely accessible when it appeared on Apple and Google app stores early this year. But it was a follow-up research paper published last week — on the same...

🤖 DeepSeek's AI Model Disrupts Global Tech Markets Chinese AI startup DeepSeek has introduced its open-source R1 model, challenging leading Western AI models. This development has led to significant declines in U.S. tech stocks, including Nvidia, Microsoft, Meta, and Alphabet. 📊 Key Findings: • DeepSeek's R1 model rivals leading Western AI models. • Significant declines in U.S. tech stocks, including Nvidia and Microsoft. 💡 Why This Matters: • Highlights the emergence of cost-effective AI solutions from Chinese startups. • Shift in global AI investment strategies. 🔗 Read more: https://lnkd.in/eKKr_5k9 How do you think cost-effective AI models will impact the competitive landscape beyond what's already happening? #AI #DeepSeek #OpenAI #Innovation

Liang Wenfeng: The Chinese AI Billionaire Disrupting the Global Tech Landscape Liang Wenfeng, a former hedge fund manager, has quietly built DeepSeek, a Chinese AI startup that's causing ripples across the globe. Its AI models, developed on a fraction of the budget of US competitors, are rivaling the performance of cutting-edge technologies from OpenAI and Google. Here's what makes DeepSeek so disruptive: * Cost-effectiveness: DeepSeek's R1 model, comparable to OpenAI's GPT-4, cost only $5.6 million to develop, a stark contrast to the billions spent by US companies. This is achieved through innovative training techniques using less powerful, and therefore cheaper, chips. * Open-source approach: Unlike many competitors, DeepSeek's models are open-source, allowing for broader collaboration and faster advancements. This democratizes AI access, especially for smaller businesses. * Low API costs: DeepSeek offers its advanced models via a cost-effective API, making cutting-edge AI accessible to a wider range of users. * Reinforcement learning: The company utilizes reinforcement learning, a technique that allows AI models to learn from experience, improving their reasoning and problem-solving abilities. This mirrors human learning processes. DeepSeek's rapid ascent has sent shockwaves through Silicon Valley and beyond, raising crucial questions: * The implications for US tech giants and their massive AI investments. * China's growing AI prowess despite chip restrictions. * India's position in the global AI race. * Concerns regarding potential censorship and the ethical implications of AI development. Liang Wenfeng's unconventional background and DeepSeek's unique strategy are reshaping the AI landscape, demanding attention from industry leaders and policymakers alike. #AI #ArtificialIntelligence #China #DeepSeek #Technology #Innovation #OpenSource #GlobalTech #Disruption #LiangWenfeng

What is DeepSeek, the Chinese AI startup that shook the tech world? A surprisingly efficient and powerful Chinese AI model has taken the technology industry by storm. It’s called Deepseek R1, and it’s rattling nerves on Wall Street. The new AI model was developed by DeepSeek, a startup that was born just a year ago and has somehow managed a breakthrough that famed tech investor Marc Andreesen has called “AI’s Sputnik moment”: R1 can nearly match the capabilities of its far more famous rivals, including OpenAI’s GPT-4, Meta’s Llama and Google’s Gemini – but at a fraction of the cost. The company said it had spent just $5.6 million powering its base AI model, compared with the hundreds of millions, if not billions of dollars US companies spend on their AI technologies. That’s even more shocking when considering that the United States has worked for years to restrict the supply of high-power AI chips to China, citing national security concerns. That means DeepSeek was supposedly able to achieve its low-cost model on relatively under-powered AI chips. Nasdaq 100 Technology Sector Index has crashed -3.5 per cent during the opening trade on Monday, January 27. Nvidia shares sunk 13 per cent at the opening day, erasing $465 billion in market value.

#DeepSeek gained much attention last week for its R1 model which claimed to deliver #AI results at a fraction of the cost being spent by the likes of #OpenAI and the major US Tech companies. One potential fall-out is it could be bad for Intellectual Property rights holders in western markets. The rationale is this. DeepSeek's results have raised concern that the US' advantages in spending and its attempts to stop the transfer of state of the art chips may not be enough to stop China's efforts to develop comparable AI models. If that is the case, one of the arguments very likely to be made by the AI players in the US is that China has an advantage because it has a less 'robust' attitude to IP rights to train models (think #TikTok and the questions raised about how exactly users are targeted) and therefore, if the US is going to keep its lead, it will need to water down IP protections. This might be true or not. However, the key point it is a powerful argument to be made to an Administration that sees the competition in AI as bordering on the equivalent of the Space Race in the 1950s and 1960s. If the AI players can persuade the Administration that is the case, then the latter is almost certain to come down on their side. As usual, this is not investment advice.