The Circuit Episode 102: Deeeeeepseeeeeeek!
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Jan 27, 2025 Ben Bajarin and Jay Goldberg dive into the intriguing world of DeepSeek's AI model and its ripple effects on market trends. They touch on the complexities of AI valuations and the cautious optimism surrounding future investments in AI infrastructure. The duo debates the potential of ambient agents and the evolving role of AI in daily life, while pondering issues like job displacement. They also analyze recent investments in AI and the surprising stock performances of major tech firms amidst economic uncertainty, keeping the conversation both insightful and engaging.
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Inference Costs Falling Drives Usage Growth
- DeepSeek's big win is cheaper, faster inference via chain-of-thought techniques.
- Jay Goldberg stresses inference cost declines were expected and are accelerating usage (Jevons paradox).
Build Software Around Cheaper Tokens
- Focus on building software that monetizes cheaper inference and expands token access.
- Ben Bajarin advises entrepreneurs to target software layers that exploit lower token costs.
Video Streaming Example Of Cost-Led Expansion
- Ben recounts early video streaming economics to show how falling costs enabled massive new markets.
- He uses YouTube's rise as an example of demand exploding when delivery became cheap.