{"id":17581,"date":"2025-02-01T16:37:29","date_gmt":"2025-02-01T15:37:29","guid":{"rendered":"http:\/\/costops.com\/index.php\/2025\/02\/01\/ai-is-not-just-powerful-whats-really-worrying-is-that-deepseek-has-made-it-cheap-too-john-naughton\/"},"modified":"2025-02-01T16:37:29","modified_gmt":"2025-02-01T15:37:29","slug":"ai-is-not-just-powerful-whats-really-worrying-is-that-deepseek-has-made-it-cheap-too-john-naughton","status":"publish","type":"post","link":"http:\/\/costops.com\/index.php\/2025\/02\/01\/ai-is-not-just-powerful-whats-really-worrying-is-that-deepseek-has-made-it-cheap-too-john-naughton\/","title":{"rendered":"AI is not just powerful. What\u2019s really worrying is that DeepSeek has made it cheap, too | John Naughton"},"content":{"rendered":"

The AI startup has upended the industry by developing a model that costs much less to produce \u2013 and is available free to a universe of tinkerers<\/p>\n

Nothing cheers up a tech columnist more than the sight of $600bn being wiped off the market cap of an overvalued tech giant in a single day<\/a>. And yet last Monday that\u2019s what happened to Nvidia, the leading maker of electronic picks and shovels for the AI gold rush. It was the biggest one-day slump for any company in history, and it was not alone \u2013 shares of companies in semiconductor, power and infrastructure industries exposed to AI collectively shed more than $1tn in value on the same day.<\/p>\n

The proximate cause of this chaos was the news that a Chinese tech startup of whom few had hitherto heard had released DeepSeek R1, a powerful AI assistant that was much cheaper to train and operate than the dominant models of the US tech giants \u2013 and yet was comparable in competence<\/a> to OpenAI\u2019s o1 \u201creasoning\u201d model. Just to illustrate the difference: R1 was said to have cost only $5.58m to build, which is small change compared with the billions that OpenAI and co have spent on their models; and R1 is about 15 times more efficient (in terms of resource use) than anything comparable made by Meta.<\/p>\n

Continue reading…<\/a>
\nThe AI startup has upended the industry by developing a model that costs much less to produce \u2013 and is available free to a universe of tinkerers
\nNothing cheers up a tech columnist more than the sight of $600bn being wiped off the market cap of an overvalued tech giant in a single day. And yet last Monday that\u2019s what happened to Nvidia, the leading maker of electronic picks and shovels for the AI gold rush. It was the biggest one-day slump for any company in history, and it was not alone \u2013 shares of companies in semiconductor, power and infrastructure industries exposed to AI collectively shed more than $1tn in value on the same day.
\nThe proximate cause of this chaos was the news that a Chinese tech startup of whom few had hitherto heard had released DeepSeek R1, a powerful AI assistant that was much cheaper to train and operate than the dominant models of the US tech giants \u2013 and yet was comparable in competence to OpenAI\u2019s o1 \u201creasoning\u201d model. Just to illustrate the difference: R1 was said to have cost only $5.58m to build, which is small change compared with the billions that OpenAI and co have spent on their models; and R1 is about 15 times more efficient (in terms of resource use) than anything comparable made by Meta. Continue reading…Technology | The Guardian<\/p>\n","protected":false},"excerpt":{"rendered":"

The AI startup has upended the industry by developing a model that costs much less to produce \u2013 and is available free to a universe of tinkerers Nothing cheers up a tech columnist more than the sight of $600bn being wiped off the market cap of an overvalued tech giant in a single day. And …<\/p>\n

AI is not just powerful. What\u2019s really worrying is that DeepSeek has made it cheap, too | John Naughton<\/span> Read More »<\/a><\/p>\n","protected":false},"author":0,"featured_media":17582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/posts\/17581"}],"collection":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/comments?post=17581"}],"version-history":[{"count":0,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/posts\/17581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/media\/17582"}],"wp:attachment":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/media?parent=17581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/categories?post=17581"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/tags?post=17581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}