"I’m going to be upfront with you here and say that 404 Media does not provide any financial advice and that if I had definitive answers to any of these questions I’d be playing the stock market instead of blogging, but in a day when the takes are going to come fast and furious my take is this: The AI industry continues to develop very fast, it’s hard to extrapolate how it’s all going to unfold based on single event, even if it’s monumental, and the fact that DeepSeek comes from China, a perceived adversary to the United States/the West is making hawks and xenophobes, and tankies foam at the mouth.
Let’s take a deep breath and start with the biggest headline, which is that Nvidia stock dropped over 12 percent early this morning, its worst performance since 2020. GPU maker Nvidia became a trillion dollar company because it is largely making the chips that power the generative AI boom. These are not only the chips that people need to generate text, images, audio etc locally on their machines, but the massive training clusters of thousands of chips that these foundational models are trained on. In July, for example, Elon Musk proudly announced that xAI started training “the most powerful AI training cluster in the world,” composed of 100,000 Nvidia H100s."
https://www.404media.co/deepseek-mania-shakes-ai-industry-to-its-core/
#DeepSeek #AI #GenerativeAI #DeepSeekR1 #BigTech #China #SiliconValley #Nvidia
"Now it’s become clear that the moat the U.S. built to protect its companies from domestic competition actually created the conditions that allowed them to atrophy. They got fat and happy inside their castles. Their business pivoted from technological innovation to performing alchemy with spreadsheets, turning made-up metrics into dollar valuations detached from reality. Now DeepSeek has exposed the scam. With a tiny fraction of the resources, and without access to the full panoply of U.S. chip technology, the Chinese company DeepSeek has pantsed Silicon Valley. The U.S. company OpenAI began as a nonprofit dedicated to making AI widely available, as its name suggests. Its top guy, Sam Altman, managed to transition it to a for-profit and close it off.
Now DeepSeek is ironically fulfilling OpenAI’s original mission by providing an open-source model that simply performs better than any in the market. We have an FAQ on the details of DeepSeek below.
Meanwhile here in the United States, Trump is celebrating a (possibly exaggerated) $500 billion investment in Texas to fuel AI computer power that appears to be made obsolete—or much less relevant—thanks to DeepSeek’s innovation. And Trump is stacking his administration with crypto bros, tech moguls refusing to divest, and even launched his own scam meme coin. Trump’s senior tech advisers like Elon Musk meanwhile have extensive commercial ties directly with China. You don’t have to squint too hard to see which of these countries is going to win this competition."
https://www.dropsitenews.com/p/deepseek-openai-lina-khan-sam-altman