Leveraging AI
160 | 🚨 RED ALERT 🚨 – DeepSeek R1 (a Chinese model) shocks the AI world, outperforming GPT o1 and crushing NVIDIA stock, sparking urgency across the U.S. AI scene. Plus, GPT-o3 is here, Gemini unveils groundbreaking features, and more must-know AI news
Feb 1, 2025
A groundbreaking Chinese AI model named DeepSeek R1 is reshaping the AI race, outperforming established giants at a fraction of the cost. This disruption sent NVIDIA's stock plummeting, revealing the urgency for U.S. companies to innovate. New features from Google raise ethical questions, including non-editable charts and a function that makes calls on users' behalf. The episode also discusses the implications of open-source vs. closed AI models and highlights the competitive landscape's rapid evolution.
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Quick takeaways
- DeepSeek's emergence as a competitive player in AI has demonstrated that high-quality models can be developed at significantly lower costs.
- The drastic decline of NVIDIA's stock highlights vulnerabilities in the American tech sector amidst rising competition from international AI models.
Deep dives
The Emergence of DeepSeek
DeepSeek is a young Chinese AI company founded in May 2023, led by serial entrepreneur Liang Wenfeng, who previously co-founded a successful AI hedge fund. The company aims to uncover unique approaches to developing artificial general intelligence (AGI) without the immediate pressure to generate profits, thanks to its backing from the hedge fund Highflyer. Their recent model, DeepSeek 3, has surpassed expectations by performing comparably, and in some cases better, than leading American models like GPT-40 and Claude 3.5, all while reportedly spending only $5.6 million on its training.
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