Gradient Dissent: Conversations on AI DeepSeek, Stargate and AI's $600 Billion Question with Sequoia's David Cahn
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Jan 28, 2025 
David Cahn, a Partner at Sequoia Capital known for his expertise in AI investments, joins the discussion to unravel the latest AI trends. He explores the launch of DeepSeek and its impact on the AI landscape, emphasizing the shift towards smaller, more efficient models. Cahn contrasts the high stakes of AI infrastructure investments with the challenges of commoditization. He also delves into the intersection of AI and global supply chains, speculating on future breakthroughs and the relationship between AI technology and our understanding of consciousness.
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DeepSeek's Commoditization Signal
- DeepSeek, a smaller, distilled AI model, was trained by a hedge fund in China.
- Its low training cost suggests potential commoditization of foundation models.
Stargate vs. DeepSeek: Divergent AI Futures
- Stargate's $500 billion data center investment contrasts with DeepSeek's cheaper model, presenting two divergent paths for AI.
- Microsoft's revealed preference suggests a shift from equity-funded to credit-funded data centers.
AI's $600 Billion Revenue Question
- David Cahn's "AI's $600 Billion Question" explores the revenue needed to sustain AI infrastructure investments.
- For every dollar spent on GPUs, two dollars of revenue are needed, assuming a 50% gross margin.
