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 world of AI and technology. He discusses the buzz around DeepSeek, a Chinese AI company asserting it built an advanced language model for just $6 million—far cheaper than U.S. competitors. The conversation also touches on the impact of proposed semiconductor tariffs and contrasting strategies from the Trump and Biden administrations on tech manufacturing. Finally, Dave highlights recent legislative moves aimed at protecting children from the dangers of social media.
DeepSeek's claim of developing an advanced AI language model for only $6 million raises questions about the financial practices of major tech companies.
The bipartisan Kids Off Social Media Act reflects increasing recognition of social media's potential harms on children's mental health and safety.
Deep dives
Puerto Rico as an Innovation Hub
Puerto Rico is positioned as a vibrant ecosystem for innovation, attracting both startups and established global enterprises. The island's highly skilled, bilingual workforce and competitive tax incentives make it an attractive location for businesses seeking to thrive in a new environment. This unique combination not only fosters technological advancements but also encourages talent retention and attraction. Puerto Rico's promise extends beyond its natural beauty; it is emerging as a crucial player in the global innovation landscape.
DeepSeek's Disruption in the AI Market
DeepSeek, a Chinese AI company, has gained attention by claiming its advanced language model was developed at a fraction of the cost of competitors in Silicon Valley, spending only $6 million on compute power. This revelation sparked debate about the financial strategies of major AI firms and raised questions regarding the reliability of DeepSeek's claims, as the absence of peer-reviewed validation leaves room for skepticism. The hype around DeepSeek also reflects a broader public fascination with AI, reminiscent of the initial surge of interest seen with ChatGPT. Despite concerns about the sustainability and ethics of a fast-paced AI arms race, the excitement for innovation in this field remains strong.
Legislative Efforts to Protect Children Online
A new bipartisan bill, the Kids Off Social Media Act, aims to prohibit social media access for children under 13 and restrict data collection from users under 17. This legal push mirrors growing concerns about the impact of social media on the mental health and safety of young users. Senators from both parties recognize the need to protect children from harmful content while navigating a complex relationship with social media companies that may resist such regulation. The revival of this bill indicates a critical moment for lawmakers and industry stakeholders to find a balance between safety and user autonomy.
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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