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The Socialist Program with Brian Becker
China's DeepSeek Develops AI Model Like ChatGPT Without Newest Chips—And It's Free
Jan 29, 2025
Richard Wolff, a professor and co-founder of Democracy at Work, dives into the revolutionary AI model developed by China's DeepSeek, which has taken the tech world by storm without relying on cutting-edge chips. He discusses the implications of this shift for U.S. companies, including a staggering $600 billion stock loss for Nvidia. Wolff critiques U.S. tariff policies and highlights the risks of isolationism, urging a reevaluation of how the U.S. engages with emerging powers in a rapidly evolving global economy.
40:05
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Quick takeaways
- DeepSeek's emergence as a competitor, developing advanced AI without high-end chips, signifies vulnerabilities within U.S. technology and capitalism.
- The contrasting investment in education between China and the U.S. highlights its impact on innovation and technological growth capabilities.
Deep dives
The Rise of DeepSeek and Its Implications
DeepSeek, a Chinese AI company, has emerged as a strong competitor to established U.S. tech giants like NVIDIA by developing advanced AI devices at a significantly lower cost. This shift has led to severe drops in the stock market, specifically a $600 billion loss for NVIDIA in a single day, revealing the vulnerabilities in American capitalism. The company managed to achieve superior performance despite U.S. chip restrictions by using less powerful AI chips creatively, illustrating innovative engineering and resourcefulness. This situation not only disrupts the market but also poses a significant challenge to the narrative that only major corporations can lead in technology.
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