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‘Sputnik moment’: $1tn wiped off US stocks after Chinese firm unveils AI chatbot
(www.theguardian.com)
this post was submitted on 28 Jan 2025
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Deepseek showed that actually putting thought into the architecture achieves much more than just throwing more hardware at the problem.
This means a) there will be much less demand for hardware, since much more could be run locally on regular consumer devices. And b) the export restrictions don't really work and instead force China to create actually better models.
That means, a lot of the investments into the thousands of AI companies are in jeopardy.
Realistically, the CCP is probably throwing a lot of money at developers to get something good going and available, and US companies are whining about how it's not fair. The fact of the matter is that a solid product is available for much cheaper, and US companies are now screaming foul. Guess what, a superior product made of good code (people) beats out just throwing money at hardware, who'd've gone an thunk it.
What I find really fascinating here is that obviously openAI, Meta, etc. seem to be structurally incapable of actually innovating at this point.
I mean, reducing training costs by literally an order of magnitude just by writing better software is astonishing and shows how complacent the large corporations have gotten.
You can write off hardware purchases, paying for skilled devs is like pulling teeth