In this discussion, Jeffrey Emanuel, an investor and technologist with a keen understanding of AI and value investing, unveils the disruptive potential of China's DeepSeek AI model. He reveals how this model, showing a 45x efficiency improvement over competitors, has shaken Nvidia's stock, catalyzing a panic in the market. Emanuel also dives into the complexities of AI inference costs and how reduced expenses could alter the profitability landscape for major tech players, challenging Nvidia's dominance in the semiconductor space.

In this discussion, Jeff Emanuel, founder of Pastel Network and author of the viral 'Short Case for NVIDIA Stock,' delves into AI infrastructure and its rapid evolution. He assesses DeepSeek's breakthrough in AI efficiency and the competitive landscape of AI development between the U.S. and China. Emanuel also explores model distillation, the societal impacts of AGI, and the shifting dynamics in app-layer value capture. His insights highlight the balance between innovation and resource allocation in the fast-paced AI market.