This Week in Startups

DeepSeek Rattles Markets + SailPoint's Going Public… again? | E2077

191 snips
Jan 27, 2025
A Chinese open-source AI model, DeepSeek, has rattled Wall Street, causing a significant drop in NVIDIA's market cap and sparking debates on AI infrastructure spending. The discussion turns to the rising trend of startup shutdowns and what it reveals about lean operations. SailPoint’s troubled return to public markets, burdened with $1.6 billion in debt, raises questions about private equity's buy-and-fix approach. Finally, the implications of Jevons Paradox are examined, revealing how efficiency improvements might lead to increased resource consumption.
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INSIGHT

DeepSeek's Impact

  • DeepSeek, a Chinese AI model, challenges assumptions about high AI infrastructure costs.
  • It suggests that clever engineering with constrained resources can produce impactful innovation.
ANECDOTE

Induced Consumption

  • Historically, cheaper resources lead to higher consumption, like water usage increasing with piped access.
  • Similarly, Dropbox and YouTube emerged from the availability of cheap storage and bandwidth.
INSIGHT

AI's Future

  • Increased AI efficiency might not decrease demand but bring the future forward.
  • This could democratize access for startups, similar to how cheap storage enabled YouTube's model.
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