Deepseek isn't philanthropy, it's a hedgefund trying to short the western AI market by saying "hey we can do 90% of they can (arguably better at a density metric) for a 1/10th of the cost"
it's my theory at least, the Hindenburg Research of AI
Deepseek isn't philanthropy, it's a hedgefund trying to short the western AI market by saying "hey we can do 90% of they can (arguably better at a density metric) for a 1/10th of the cost"
it's my theory at least, the Hindenburg Research of AI
Widely held belief in investor circles is that the Chinese government has a goal to deflate the US AI bubble and Deepseek is part of the plan to achieve that goal.
Why would China care about deflating the US AI bubble? Why do we think there is a bubble for sure in 2025/2026? Why doesn't China also worry about their own AI bubble inside the country?
>Why would China care about deflating the US AI bubble?
To weaken the stature of the USA on the global stage relative to themselves. Perhaps decrease US investment in AI and slow creation of some general AI superweapon I suppose.
Because the goal is to show that cheap chinese AI can compete with expensive USA AI, it's nessisarially a low-cost attack relative to the "damage" it could create.
>Why do we think there is a bubble for sure in 2025/2026?
Well that's the position that these chinese firms are trying to convince us of, and they can convince us by undercutting proprietary models in price/performance/openness.
In other words, we can be sure there is a bubble to the extent that open-weight models can successfully demonstrate that there is no moat.
>Why doesn't China also worry about their own AI bubble inside the country?
Because they haven't bet the farm on AI like the USA has.