The Socialist Program with Brian Becker

China's DeepSeek Develops AI Model Like ChatGPT Without Newest Chips—And It's Free

9 snips
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.
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ANECDOTE

Nvidia's Stock Crash

  • NVIDIA's stock plummeted $600 billion after DeepSeek, a Chinese AI startup, announced a cheaper, more efficient AI model.
  • This event highlighted the fragility of the American capitalist system and its reliance on expensive technology.
INSIGHT

China's Educational Investment

  • DeepSeek's success isn't isolated; it reflects broader trends, like China's educational investments.
  • While the US shrinks its educational infrastructure, China expands, fostering innovation.
INSIGHT

US Sanctions Backfire

  • US sanctions against China backfired, accelerating China's independent tech development, like DeepSeek's AI.
  • This makes China's tech more attractive globally, threatening US dominance.
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