Why DeepSeek could mark a turning point for Silicon Valley on AI；They Invested Billions. Then the A.I. Script Got Flipped.
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Why DeepSeek could mark a turning point for Silicon Valley on AI
CNN
Silicon Valley is reassessing its approach to artificial intelligence (AI) development following the emergence of DeepSeek, a Chinese start-up that has released an open-source AI model, R1, which rivals those from American tech giants at a significantly lower cost. This challenges the long-held belief that extensive financial resources and advanced infrastructure are essential for AI advancement. Experts note that the industry is shifting towards prioritizing efficiency and cost-effectiveness over merely increasing model power. OpenAI has responded to DeepSeek's success by promising to accelerate the release of its new models. While some industry leaders view DeepSeek as a validation of open-source AI, others are concerned about the competitive landscape. The implications of this shift may lead to reduced data center spending and a reconsideration of pricing strategies for AI tools. Although DeepSeek's claims of low development costs have been met with skepticism, its achievements suggest a faster evolution towards efficient AI solutions. Ultimately, this transition may democratize AI technology, fostering broader access and innovation within the field.
https://edition.cnn.com/2025/01/29/tech/deepseek-silicon-valley-ai/index.html
They Invested Billions. Then the A.I. Script Got Flipped.
NY Times
Jordan Jacobs, an investor at Radical Ventures, has been receiving inquiries from investors about DeepSeek, a Chinese AI app that recently topped app stores. DeepSeek developed a powerful AI model at a fraction of the cost expected by experts, challenging existing beliefs about AI development. Jacobs reassured investors that Radical Ventures has invested in efficient AI models similar to DeepSeek's. The rise of DeepSeek has sparked questions for major tech companies like Nvidia, Google, and Meta, as well as for the venture capital industry, which has invested heavily in AI startups, pouring over $155 billion into the sector between 2023 and 2024. The success of DeepSeek raises doubts about the substantial funding sought by larger companies like OpenAI and Anthropic, which have raised billions to develop human-level AI.
https://www.nytimes.com/2025/01/29/technology/deepseek-ai-startups-venture-capital.html
How Does DeepSeek’s A.I. Chatbot Navigate China’s Censors? Awkwardly.
NY Times
The article discusses the Chinese A.I. chatbot DeepSeek and its handling of censorship within China. The author tested DeepSeek while connected to the Chinese internet, experiencing a mix of less censorship compared to other domestic platforms and instances where the chatbot self-censored its responses. DeepSeek's "thinking" feature allowed users to gain insights before the program deleted certain answers. Despite some restrictions, the chatbot mirrored the broader experience of internet use in China, with developers actively working to address censorship gaps. The findings suggest that DeepSeek could potentially spread Chinese narratives globally if it gains popularity outside of China.
https://www.nytimes.com/2025/01/29/world/asia/deepseek-china-censorship.html
ASML sees uneven AI growth among chipmakers as DeepSeek shocks market
Nikkei Asia
ASML, a leading European chipmaking equipment manufacturer, indicated that artificial intelligence (AI) continues to be a significant growth driver for its clients, although the benefits vary among customers. CEO Christophe Fouquet noted that while demand for AI remains strong, there is uncertainty that could impact the company's revenue forecast for the year. ASML anticipates revenue for 2025 to be between 30 billion and 35 billion euros, an increase from 28.3 billion euros in 2024.
Recent developments, such as Chinese startup DeepSeek's new AI computing approach, have raised questions about the future demand for robust AI hardware, affecting shares of companies like Nvidia. Additionally, Taiwan Semiconductor Manufacturing Co. (TSMC), ASML's largest customer, expects significant growth in AI chip revenue over the next five years.
ASML's revenue from China is expected to normalize by 2025, predicting a drop to about 20% of total revenue from 41% in 2024. The company also reported a rise in sales to the U.S. and Japan, as global chipmakers expand their manufacturing operations abroad.
https://asia.nikkei.com/Business/Technology/Artificial-intelligence/ASML-sees-uneven-AI-growth-among-chipmakers-as-DeepSeek-shocks-market2
Alibaba releases AI model it claims surpasses DeepSeek
Nikkei Asia
Chinese tech company Alibaba has launched its Qwen 2.5-Max artificial intelligence model, claiming it outperforms notable competitors such as DeepSeek-V3, GPT-4o, and Llama-3.1-405B. The release coincided with the Lunar New Year, underscoring the competitive pressure from the rapid rise of the Chinese startup DeepSeek, which has prompted a flurry of updates and innovations among domestic rivals. DeepSeek's recent AI assistant and model releases have caused notable disruptions in the tech sector, leading to concerns among investors about the spending of established firms like OpenAI. This has sparked an "AI model price war" in China, initiated by DeepSeek's low-cost offerings. The founder of DeepSeek, Liang Wenfeng, emphasizes the startup's focus on achieving artificial general intelligence (AGI) rather than engaging in price competition, believing that large tech companies may not be best suited for the future of AI development due to their high operational costs.
https://asia.nikkei.com/Business/Technology/Artificial-intelligence/Alibaba-releases-AI-model-it-claims-surpasses-DeepSeek
After talking tough during campaign, Trump appears to ease up on China at start of presidency
Associated Press
President Donald Trump, after a tough campaign stance on imposing high tariffs on Chinese goods, is now adopting a more nuanced approach towards China in his second term. At the World Economic Forum, Trump expressed a desire for improved relations with China, suggesting that cooperation could help address global issues like the Ukraine conflict and nuclear armament. He plans to impose 25% tariffs on Canada and Mexico but remains uncertain about a specific date for China, mentioning a potential 10% tariff in response to fentanyl production. Experts note that Trump appears to be taking a more pragmatic stance compared to his first term, which was marked by a trade war and strained relations exacerbated by the COVID-19 pandemic. His Secretary of State, Marco Rubio, while critical of China, also emphasizes the importance of engagement for global stability. Both Trump and Chinese leaders are signaling a willingness to communicate effectively to avoid escalating tensions. However, Beijing is prepared to respond robustly to any adverse actions from the U.S., indicating a complex and potentially contentious relationship moving forward.
https://apnews.com/article/trump-xi-china-tiktok-tariffs-228c21dc088a22f5c816d3e827a97860
Dancing kings: Unitree humanoid robots, backed by Alibaba tech, delight Spring Gala show
South China Morning Post
Unitree, a Chinese robotics company backed by Alibaba Cloud, showcased its H1 humanoid robots' dancing skills during the Spring Festival Gala, captivating over 1 billion viewers. Sixteen H1 robots performed a choreographed Chinese folk dance, aided by AI algorithms and cloud technology for real-time spatial data processing. Directed by filmmaker Zhang Yimou, this marked the first large-scale AI-driven humanoid robot performance. The event highlights China's advancements in robotics, amidst a growing demand for humanoid robots due to an aging population. In April, humanoid robots are set to participate in the world's first human-robot marathon in Beijing.
https://www.scmp.com/tech/tech-trends/article/3296720/dancing-kings-unitree-humanoid-robots-backed-alibaba-tech-delight-spring-gala-show?utm_source=rss_feed
Meta Gave Away Its A.I. Crown Jewels. DeepSeek Vindicated Its Strategy.
NY Times
DeepSeek, a small Chinese company, announced it has developed an A.I. system that rivals leading American products, raising concerns that China is advancing in the global A.I. race. The company claims it achieved this with less expensive resources and fewer scarce computer chips. This development has been seen as a validation of Meta's controversial decision to release its A.I. technology for free nearly two years ago. Meta executives believe DeepSeek's success illustrates that smaller companies can now innovate and compete with larger tech firms, thanks to open-source technology. Meta's strategy aimed to democratize access to A.I. and accelerate progress in the field.
https://www.nytimes.com/2025/01/29/technology/meta-gave-away-its-ai-crown-jewels-deepseek-vindicated-its-strategy.html
Who is Liang Wenfeng, the founder of AI company DeepSeek?
Australian Broadcasting Corporation
Liang Wenfeng, a key player in China's artificial intelligence (AI) revolution, has made significant strides in the industry with his company, DeepSeek. The 40-year-old, who grew up in Guangdong during China's market capitalism era, aims to position China as a leader in AI technology, challenging the dominance of the United States. DeepSeek's recent launch of a new AI chatbot, which is cheaper and less resource-intensive than US alternatives, caused a significant drop in the value of US chipmaker Nvidia, highlighting the impact of Chinese innovation on global markets.
Despite his low public profile, Wenfeng emphasizes the need for China to innovate rather than follow foreign technology. He co-founded DeepSeek after transitioning from a successful hedge fund, focusing on artificial generative intelligence (AGI) rather than app development. By adopting an open-source model, DeepSeek aims to democratize access to AI technology, contrasting with closed systems like OpenAI. Experts believe that this open-source approach could lead to a significant shift in the AI landscape, similar to the competition between closed and open-source platforms in the smartphone market.
https://www.abc.net.au/news/2025-01-29/who-is-liang-wenfeng-the-founder-of-ai-chatbot-deepseek/104870542
DeepSeek’s rattling of US tech stocks could change how America sanctions China: analysts
South China Morning Post
The recent advancements by Chinese AI start-up DeepSeek have led to significant declines in US tech stocks, particularly affecting major companies like Nvidia. The Nasdaq Composite Index dropped over 3% as investors reacted to DeepSeek's open-source AI model, which rivals American products at a lower cost and less reliance on expensive GPU chips. Analysts are divided on the implications for US-China relations, with some suggesting that collaboration could emerge, while others believe it will intensify the competition and drive a tech decoupling between the two economies. Experts warn that the US's current export controls and sanctions may be inadequate in addressing China's rapid technological progress, advocating for a reevaluation of these strategies. DeepSeek's impact is seen as a potential "Sputnik moment" that could compel the US to enhance its domestic AI development rather than solely focusing on containment. However, geopolitical tensions are likely to persist, with both nations wary of each other's advancements. The situation has raised questions about future collaborations and the effectiveness of existing sanctions, as both countries navigate their quest for technological supremacy.
https://www.scmp.com/news/china/article/3296646/deepseeks-rattling-us-tech-stocks-could-change-how-america-sanctions-china-analysts?utm_source=rss_feed
How tech start-up DeepSeek emerged as the unlikely game changer in US-China AI war
South China Morning Post
DeepSeek, a Chinese start-up based in Hangzhou, has disrupted the global tech market by launching two advanced AI models, DeepSeek-V3 and DeepSeek-R1, which have garnered significant attention for their performance and cost-efficiency compared to offerings from major tech firms like Nvidia. Despite US restrictions on semiconductors, DeepSeek's models have been praised for matching or exceeding the capabilities of existing products in the AI field. The success has led to DeepSeek's chatbot becoming the top free app on Apple’s app stores in the US and China. Founded by Liang Wenfeng, who has a background in AI-driven quantitative trading, DeepSeek emphasizes original research and has cultivated a team of young, talented scientists. The company operates independently with strong backing from Liang's hedge fund, High-Flyer Quant, and has no immediate plans for external funding. Liang's vision for DeepSeek focuses on making advancements in artificial general intelligence (AGI) accessible and fostering innovation within China’s tech landscape.
https://www.scmp.com/tech/big-tech/article/3296626/how-tech-start-deepseek-emerged-unlikely-game-changer-us-china-ai-war?utm_source=rss_feed
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