• Debunking Myths and Understanding Deepseek: A Deep Dive into China's AI Innovation

  • Jan 29 2025
  • Length: 3 mins
  • Podcast

Debunking Myths and Understanding Deepseek: A Deep Dive into China's AI Innovation

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  • Good morning from OWITH.ai: the podcast that gives you only what's important to hear in AI and tech world.The text debunks 10 popular myths about Deepseek, including claims that it is more lobotomized than US models, can achieve what OpenAI needs billions for with just $5 million, its cheap achievements mean scaling laws don't work, and that Nvidia's crash happened because the stock was overpriced. It clarifies that Deepseek's team is not tiny compared to US AI labs, the app does not take all private data, its models are not open source, and it is not Liang Wenfeng's side project. It also addresses myths about hardware export controls not working and Deepseek being China's "ChatGPT moment."The article discusses five key points about DeepSeek R1 that most people do not seem to understand. Firstly, it is not necessarily smarter than earlier models but rather trained more cheaply. Secondly, it does not completely solve issues like hallucinations or reliability problems. Thirdly, it is still expensive to operate, especially for longer thinking processes like O3. The biggest threat posed by DeepSeek R1 is not to Nvidia, but rather to companies like OpenAI and Anthropic due to potential price wars.DeepSeek's impact on the venture capital world and AI investing has caused disruption in Silicon Valley's AI playbook, leading to uncertainty and questions about industry assumptions. Many VCs are remaining calm and analytical, waiting to see how the situation unfolds. Jenny Xiao views DeepSeek as a triumph of open source over closed source, posing challenges for companies like OpenAI. Despite the frenzy over DeepSeek, its existence since 2023 serves as a reminder to pay attention to Chinese AI innovations.A Chinese AI startup called Deepseek is causing a significant impact on the tech industry, particularly on U.S. companies like Nvidia. Deepseek's low-cost AI technology has led to a stock market rout for tech companies, with Nvidia losing a significant amount of market capitalization. Deepseek's success has also raised concerns about the competitiveness of U.S. firms in the AI sector and has implications for open-source AI models.The release of the Chinese AI model DeepSeek R1 has caused disruption in the tech industry, leading to debates on US vs. China dynamics, closed source vs. open source, and expensive vs. cheap technology development. President Trump has called it a wakeup call for Silicon Valley, while analysts are skeptical about its claims and impact on companies like Nvidia.Deepseek, a Chinese AI startup founded in 2023, has made significant advancements in AI technology, challenging the dominance of US companies like Nvidia. The company's focus on foundational advancements and efficient engineering techniques has raised questions about the future of AI competition between the US and China. The emergence of Deepseek highlights the ingenuity thriving under constraints imposed by US export controls and may attract investment and talent away from other Chinese AI startups.Thank you for listening to OWITH.ai: the podcast that brings you the latest updates in AI and tech world.

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