I’ve been doing a dive for a couple of days and these are the main deets I’ve pulled together, will have a Guy’s Take on it soon, so stay tuned to the nostr:npub1hw4zdmnygyvyypgztfxn8aqqmenxtwdf3tuwrd44stjjeckpc37q6zlg0q feed

DeepSeek ELI5:

• US has been hailed as the leader in Ai, while pushing fears that we need to be closed and not share with China cuz evil CCP and they can’t figure it out without us

• ChatGPT and “Open”Ai is poster child, eating up retarded amounts of capital for training and inference (using) LLMs. Estimates say around $100 million or more for ChatGPT o1 model.

• In just a couple of weeks China drops numerous open source models with incredible results, Hunyuan for video, Minimax, and now DeepSeek. All open source, all insanely competitive with the premiere closed source in the US.

• DeepSeek actually surpassed ChatGPT o1 on most benchmarks, particularly math, logic, and coding.

• DeepSeek is also totally open with how its thought process works, it explains and shows its work as it runs, while ChatGPT makes that proprietary. This makes building with, troubleshooting, and understanding with DeepSeek much better.

• DeepSeek is also multimodal, so you can give it PDFs, images, connect it to the internet, etc. it’s a literal full personal assistant with just a few tools to plug into it.

• The API costs 95% LESS than ChatGPT API per call. They claim that is a profitable price as well, while OpenAi is bleeding money.

• They state that DeepSeek cost only $5.6 million to train and operate.

• Capital controls on GPUs and chips went into effect in the past year or two trying to prevent China from “catching up,” and it seems to have failed miserably. As it seems China was able to do 20x the results per dollar with inferior hardware.

• The US model of Ai, its costs, its capes structure, and the massive demand for chips has been the model for assessing the valuation, pricing, and future demand of the entire Ai industry. DeepSeek just took a giant dump on all of it by out performing and spending a tiny fraction to achieve it while also dealing with lack of access to the newest chips.

All of this together is why people are freaking out about a plummet to Nvidia price, reevaluation of OpenAi, and the failure of US to stay dominant or even the legitimacy of staying proprietary as it may just cause us to fall behind rather than lead. All after a $700 billion investment was just announced that now just kinda looks like incompetent corporations wasting horrendous amounts of money for something they won’t even share with people, that you can’t run locally, and is surpassed by a few lean Chinese startups with barely a few million.