Why is Deepseek being so good a bad thing?

MASSIVELY lower if all is accurate.

Very true.

Yes, this is in the ballpark of they spent.

This is a major win for the open source proponents.

On the long term open source is the ONLY solution. In the US only Meta (Facebook) and a few others are releasing open source models. OpenAI and others dont, and it will lead to their downfall unless they change.

Open source allows for advancements to go MUCH MUCH faster.

My reaction to this was is this a turning point?

Back when I was a kid "Made in Japan" meant garbage. Cheap, tacky garbage. Then in the 1970s it all changed. Suddenly Japanese cars, stereos, cameras, etc. became the benchmark for quality stuff. The West suddenly had to play catch-up. Major corporations announced they were adopting Japanese quality control methods, Japanese logistics etc.

I worry that the same thing is happening with China. Yes, for a long time "Made in China" meant crap. Cheap dollar store stuff. But I worked with Chinese companies and it was impressive how much they wanted to know about what they were making for us, why some defects could be accepted and why some could not.

Their approach was totally different to Western suppliers. Western companies just wanted to get paid. If we rejected parts they bitched and moaned and claimed the defects were impossible to fix or they would need to double the price etc. The Chinese wanted to work with us to improve it. However, it was also very clear that they were data mining us at every opportunity. We had to be very careful what we told them but it was obvious their long term intention was to replace us.

I can't help thinking this may be the start of a sea change in design and manufacturing. We used to say the Japanese can't make anything original, all they can do is make cheap copies. Today we say the same thing about the Chinese but we may find we are wrong about that as well.

I read people who have tested Deepseek is very good. I'm presuming this is not Wuhan Lab people but Westerners with no stakes to lie. I also read many hedge funds already exited the AI trades due to Deepseek.

Chinese are much smarter than Americans who are saddled with POC/DEI subgroups with lower IQ. China ranks near the top in IQ. Computing and even more so programming is all math. This shouldn't be surprising if they figured out a better way to AI than Sam Altman. Altman seems much more concerned with protecting Open AI's channels to make $$$. I read his company is burning through so much cash and needs so many more chips. If Deepseek is really good as it is, Altman has failed. Have you seen AI work in Google search and customer service. It's garbage now.

You can build your own R&D platform.

I do it all the time.

Use Ubuntu Linux 24.04 on any PC.

If you don't know Linux you can use Win 11 but Win always crashes.

R&D Engineers always use Linux or the old real Unix.

Normally you have to be a true software geek to get it to build on Linux, Unix, Win, MacOs.

Caveat: A rare newbie might be able to build it. I know some HKN Fraternity Brothers enrolled in college who have done so.

You can then train the models with your local political and cultural viewpoints.

Otherwise you use rhe retail builds from China or clone thereof.

Or pay someone to build it for you.

Then its trained politically and culturally to their norms.

Everyone has their local norms that may not align with yours.

They are very good at copying other ideas

2025 Silicon Valley = 1970 Detroit

Our fundamental problem is that Big Tech and VC want innovation to be expensive and exclusive. They wish to be the gate keepers and force customers to buy from them.

China, for all of its flaws, understands that they can undermine US dominance with a less expensive and more democratized approach.

They are doing in tech what the Japanese, then the Koreans, did to the automotive and consumer electronics industry. Whitey was caught sleeping and smoking his own dope again.

Most of the VCs and tech CEOs banging the AGI drum really are abusing recreational drugs, and not just getting high on their own metaphorical supply, FWIW.

I bought $50k of NVDA last week at $142

I see no reason to doubt any Chinese claims.

Who said it’s bad, Wejo? Investors in overpriced and overhyped Nvidia? Did people really not think there would be competition? That’s good. Whether US or global, competition is what makes capitalism, keeps our costs down and creates investment in productive assets.

Citation please?

It's not Chinese claims. You can download the app. It's #1 download in Apple store. The AI experts who tried Deepseek said it was better than Open AI. A company doesn't lose $600 billion market value for nothing.

I think what happened is a shock the the public, politicians, pundits, stockholders, journalists, and retail users who wants a hero versus vilan to point to on A.I.

In contrast its appears to be a nice break though, an important, but just a run-of-the mill incremental improvement, for foks involved in the R&D community.

The Public's big-AI guys can just upload the open source from github and diff the old and new versions to see what Deep Seek changed. No bigee.

Then incorporate the changes into their versions and voila, they have to same technology that Deep Seek has.

That's a beauty of Open Source.

It's free to the Big-AI guys, for you, and for me.

The code is open source and can be checked. Users can download the app and try for themselves, you do not have to rely on their claims. The technical paper describing the approach has been published a few weeks ago and the code is freely available. R1 has been out for over a week now.
There may be some exaggeration here and there, but the overall claims that V3-R1 has accuracy comparable to the best LLMs and that it can be trained at a fraction of the cost are likely to be accurate.
Yes, I think it is a good thing, unless your portfolio is heavy on NASDAQ stocks.

NASDAQ is going to get hit again tomorrow morning! DeepSeek just dropped their AI image creation tool about and hour ago and people are already saying it is superior to OpenSI Dall-E 3.

Going to be some very stressed out VC folks tomorrow.