Bytes: Week in Review — DeepSeek, chip tariffs, and an attempt to get kids off social media
Jan 31, 2025
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Paresh Dave, a senior writer at Wired, dives into the latest buzz around DeepSeek, a Chinese AI powerhouse that claims to have built a leading large language model at a mere $6 million cost. The conversation highlights the ongoing frenzy in AI investment and the competitive landscape of language models. They also discuss Trump's proposed tariffs on semiconductor imports and a bipartisan effort to keep kids off social media, raising crucial debates about technology, safety, and market dynamics.
DeepSeek's claim of developing a competitive AI language model at a fraction of the cost raises questions about investment transparency in the AI industry.
The proposed Kids Off Social Media Act demonstrates a bipartisan effort to protect children online while balancing their rights to social interaction.
Deep dives
Puerto Rico as an Innovation Hub
Puerto Rico is highlighted as an emerging hub for innovation, offering a dynamic ecosystem where startups and global businesses thrive. The island boasts a highly skilled and bilingual workforce, making it an attractive location for companies looking to expand. Additionally, Puerto Rico provides competitive tax incentives that appeal to businesses, positioning it as a prime choice for entrepreneurs. As a result, many believe that if a business can operate anywhere, Puerto Rico should be at the top of the list.
The DeepSeek AI Controversy
DeepSeek, a Chinese AI firm, has made waves by claiming it developed a large language model at a significantly reduced cost compared to its Silicon Valley counterparts, allegedly spending only $6 million on computational power. While this figure has stirred excitement and speculation about the future of AI investments, skepticism exists regarding the full transparency of these claims and whether they can be validated independently. Experts are concerned that this narrative could disrupt ongoing AI development, suggesting it may not be necessary to invest heavily to achieve significant advancements. Nevertheless, the recent popularity of DeepSeek indicates a sustained public enthusiasm for AI technologies, reflecting a continued appetite for innovation in this fast-evolving field.
Legislation Aiming to Protect Kids on Social Media
A proposed bipartisan bill, the Kids Off Social Media Act (COSMA), seeks to ban children under 13 from social media platforms and restrict data collection from users under 17. Proponents argue that this legislation is essential to safeguard children from harmful content and excessive exposure to social media algorithms. Despite previous iterations failing to pass, there appears to be renewed momentum regarding child protection amid bipartisan alignment on regulating social media. Concerns remain about how such measures will be balanced with the rights of young users to connect and express themselves online, making the outcome of this legislation particularly significant.
Everyone was obsessed with the new white whale of the AI world this week. We’ll get into it on today’s “Marketplace Tech Bytes: Week in Review.” Plus, Trump floats tariffs on semiconductors from overseas. And a bipartisan Senate bill to ban kids from social media is getting another look. But first, back to that DeepSeek drama. The Chinese AI company took the world and the markets by storm with claims that its class-leading large language model was built at a fraction of the cost of Silicon Valley rivals. DeepSeek claims it spent only $6 million on compute power — at least 16 times less than leading U.S. companies. Marketplace’s Meghan McCarty Carino spoke with Paresh Dave, senior writer at Wired, about all these topics for this week’s Tech Bytes.
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