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DeepSeek has literally stumped everyone across the world! For those unaware, DeepSeek AI disruption has hit the global market. DeepSeek was founded in late 2023 by Chinese hedge fund manager Liang Wenfeng. Today, its R1 is able to match the most powerful AI models, such as those from ChatGPT, Meta, and Google!
Dr. Robert Castellano, renowned expert and author of Semiconductor Deep Dive, USA, has stated that DeepSeek serves as a reminder of potential risks to Nvidia's long-term growth, including the rise of cost-effective alternatives and evolving geopolitical dynamics.
Perhaps, this was coming! Having worked in Hong Kong and China for several years, I have known that China is never one to take things lying down. And, DeepSeek is testimony to that! The fact that DeepSeek has been developed by spending just $5.6 million is a slap across the face for the so-called 'Mughuls' of the global tech industry.
Today, am sure, some industry executives could be very embarrassed, in private or public, by the 'sums' they have demanded for developing their respective AI models.
Some industry experts have even described the launch of DeepSeek as a "Sputnik moment". We can now expect a more aggressive AI policy from the Trump administration in the USA. We shall see!
We have Sam Altman, CEO, OpenAI, releasing a statement across X that “DeepSeek's R1 is an impressive model, particularly around what they're able to deliver for the price.” This is the same person who once stated that India cannot develop a model similar to ChatGPT. Building such a tool and the AI-driven by a massive large language model (LLM) requires a certain kind of infrastructure. We shall see!
Pat Gelsinger, fired recently by Intel as CEO, highlighted key lessons on X from computing history: lower costs fuel adoption, innovation thrives within limits, and Open wins! With DeepSeek, it is no surprise that the global stocks have gone to a meltdown with loss worth $1 trillion. What's there to see?
Look, it is abundantly clear that the Chinese engineers behind DeepSeek had very limited resources. During and post-Covid-19, China was getting lambasted all over. Now that the epidemic has gone, what's next? Well, the Chinese engineers had to get creative! And, how good has that been? Also, making AI available at cheaper cost can only help the technology, and the global market, grow.
Even the USA has been caught unaware! Maybe, now, we will have some new models come up from both USA and Europe. But, make no mistake! DO NOT ever take your eyes off China. USA, and some other countries imposed so many trade sanctions, but what happened? China has re-emerged, and stronger!
Back in 2024, Malcolm Penn, Future Horizons had said: "The current AI hype and potential over-investment has all of the echoes of the 2000 Dot.com boom and bust, and now, just as then, no-one will believe a bust is coming or foresee what will trigger it. In any event, the tech transformations always take years longer than suggested by euphoric record share prices. And, when a tech CEO asks for trillions, not billions, when raising funds for an AI chip project, you know, deep down in your heart of hearts, that the sector may be getting a little bit too hot."
How true! Now!!
Earlier, last year, there was also talk about Semiconductor Intelligent Design Automation (SEIDA), from China. Optical proximity correction (OPC) for EDA was said to be very important for manufacture-ability, and even more important as we progress to smaller geometries. Perhaps, some action is also happening there, but who is looking? Maybe, people will take a look when something else gets announced from China.
Rajesh Sinha, Founder and Chairman of Fulcrum Digital, said: "This model is great for learning and building your own projects. However, I won't be using it due to data privacy concerns. It does show that costs can be reduced by 70%, and the output can be much better. It's a good product to challenge Open AI. In the end, we as consumers should benefit."
Yea! How true!! Now!!!