Morning Brew Daily The Chinese AI Startup Rivaling OpenAI & Trump Fires Tariffs at Colombia?
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Jan 27, 2025 Disruptive forces are brewing as a Chinese startup unleashes a groundbreaking AI model that rivals OpenAI, shaking up the tech landscape. Meanwhile, Trump takes a bold stance, imposing tariffs on Colombia, stirring economic tensions. Avian flu drives egg prices sky-high, leaving consumers scrambling. On the lighter side, sports betting trends soar, with parlays dominating sportsbook revenue and Coca-Cola edging out Pepsi in a key Costco deal. As the week unfolds, the economic landscape brims with opportunities and challenges.
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Chinese AI Threat
- DeepSeek, a Chinese AI lab, rivals OpenAI's models at a fraction of the cost.
- This threatens US AI dominance and significantly impacts tech stocks.
DeepSeek's Origins
- DeepSeek, built as a side project for a Chinese hedge fund, had limited resources.
- These constraints forced them to develop highly efficient AI training methods.
Jevons Paradox & AI
- The Jevons Paradox suggests that increased efficiency in resource use can lead to higher demand.
- This could mean that DeepSeek's efficiency gains may increase demand for AI chips, not decrease it.