On the brightside, the clear fragility and lack of direct connection to real productive forces shows the instability of the present system.

So can I have a private version of it that doesn't tell everyone about me and my questions?

I asked it about Tiananmen Square, it told me it can't answer that because it can only respond with "harmless" responses.

It's quite lucid. The new thing uses a fraction of compute compared to the old thing for the same results, so Nvidia cards for example are going to be in way less demand. That being said Nvidia stock was way too high surfing on the AI hype for the last like 2 years, and despite it plunging it's not even back to normal.

Ah, but those "intelligent" people cannot be very intelligent if they are not billionaires. After all, the AI companies know exactly how to assess intelligence:

Microsoft and OpenAI have a very specific, internal definition of artificial general intelligence (AGI) based on the startup’s profits, according to a new report from The Information. ... The two companies reportedly signed an agreement last year stating OpenAI has only achieved AGI when it develops AI systems that can generate at least $100 billion in profits. That’s far from the rigorous technical and philosophical definition of AGI many expect. (Source)

You're watching an empire in decline. It's words stopped matching its actions decades ago.

Don't forget about the tariffs too! The US economy is actually a joke that can't compete on the world stage anymore except by wielding their enormous capital from a handful of tech billionaires.

how long do you think it'll take before the west decides to block all access to the model?

It’s knowledge isn’t updated.

It doesn’t know current events, so this isn’t a big gotcha moment

We will have true AI once it is capable of answering “I don’t know” instead of making things up

That, and they are just brute forcing the problem. Neural nets have been around for ever but it's only been the last 5 or so years they could do anything. There's been little to no real breakthrough innovation as they just keep throwing more processing power at it with more inputs, more layers, more nodes, more links, more CUDA.

And their chasing a general AI is just the short sighted nature of them wanting to replace workers with something they don't have to pay and won't argue about it's rights.

Text below, for those trying to avoid Twitter:

Most people probably don't realize how bad news China's Deepseek is for OpenAI.

They've come up with a model that matches and even exceeds OpenAI's latest model o1 on various benchmarks, and they're charging just 3% of the price.

It's essentially as if someone had released a mobile on par with the iPhone but was selling it for $30 instead of $1000. It's this dramatic.

What's more, they're releasing it open-source so you even have the option - which OpenAI doesn't offer - of not using their API at all and running the model for "free" yourself.

If you're an OpenAI customer today you're obviously going to start asking yourself some questions, like "wait, why exactly should I be paying 30X more?". This is pretty transformational stuff, it fundamentally challenges the economics of the market.

It also potentially enables plenty of AI applications that were just completely unaffordable before. Say for instance that you want to build a service that helps people summarize books (random example). In AI parlance the average book is roughly 120,000 tokens (since a "token" is about 3/4 of a word and the average book is roughly 90,000 words). At OpenAI's prices, processing a single book would cost almost $2 since they change $15 per 1 million token. Deepseek's API however would cost only $0.07, which means your service can process about 30 books for $2 vs just 1 book with OpenAI: suddenly your book summarizing service is economically viable.

Or say you want to build a service that analyzes codebases for security vulnerabilities. A typical enterprise codebase might be 1 million lines of code, or roughly 4 million tokens. That would cost $60 with OpenAI versus just $2.20 with DeepSeek. At OpenAI's prices, doing daily security scans would cost $21,900 per year per codebase; with DeepSeek it's $803.

So basically it looks like the game has changed. All thanks to a Chinese company that just demonstrated how U.S. tech restrictions can backfire spectacularly - by forcing them to build more efficient solutions that they're now sharing with the world at 3% of OpenAI's prices. As the saying goes, sometimes pressure creates diamonds.

Last edited 4:23 PM · Jan 21, 2025 · 932.3K Views

The money went back into the hands of all the people and money managers who sold their stocks today.

Edit: I expected a bloodbath in the markets with the rhetoric in this article, but the NASDAQ only lost 3% and the DJIA was positive today...

Nvidia was significantly over-valued and was due for this. I think most people who are paying attention knew that