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DeepSeek gets Silicon Valley talking
Since Chinese AI company DeepSeek released an open version of its reasoning model R1 at the beginning of this week, many in the tech industry have been
The MIT Technology Review writes that the company’s success illustrates how sanctions are “driving startups like DeepSeek to innovate in ways that prioritize efficiency, resource-pooling, and collaboration.” (On the other hand, the Wall Street Journal reports that DeepSeek’s Liang Wenfeng recently told China’s premier that American export restrictions still pose a bottleneck.) Curai CEO Neal Khosla offered a simpler explanation, claiming that the company is a “ccp state psyop” that’s “faking the cost was low to justify setting price low and hoping everyone switches to it [to] damage AI competitiveness in the us.” (A Community Note has been attached to his post pointing out that Khosla offers no evidence for this, and that his father Vinod is an OpenAI investor.) Meanwhile, journalist Holger Zschaepitz suggested DeepSeek could “could represent the biggest threat to US equity markets” — if a Chinese company can build a cutting-edge model at low cost, without access to advanced chips, it would call into question “the utility of the hundreds of billions worth of capex being poured into this industry.”
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