China’s New AI Model DeepSeek Just Won the Tech Race...American CEOs in Shock!

China has unveiled DeepSeek R1, an advanced AI tool developed in just two months for under $6 million, challenging US tech dominance. Released on Trump's inauguration day, it signals China's defiance against US sanctions. DeepSeek R1 matches OpenAI's performance at a fraction of the cost, and its open-source nature threatens industry giants. Despite US efforts to contain China, the country has accelerated progress in tech and manufacturing. The video also explores investment opportunities in Nevada's gold sector, highlighting Nevada Canyon Gold's innovative model and potential growth with Trump's pro-business policies.

Takeaways

• 😀 China unveiled DeepSeek R1, an advanced AI tool for deep data analysis, on the same day Donald Trump was inaugurated as the 47th US president.
• 😀 DeepSeek R1 was developed in just 2 months with dumbed-down GPUs for less than $6 million, posing an immediate challenge to America's OpenAI.
• 😀 The timing of DeepSeek's release was strategic, sending a strong signal to the US government that China has thrived despite previous sanctions.
• 😀 China's new AI software performs as well as its American counterpart but at a fraction of the cost and with less technology.
• 😀 DeepSeek R1 is open-source, allowing anyone to view, modify, distribute, and use the software, which could disrupt the current AI industry dominance.
• 😀 The US government's tech sanctions against China have failed to contain China's rise, as evidenced by China's growing trade surplus and increased global manufacturing share.
• 😀 China's progress in semiconductors and AI has accelerated due to the redirection of resources after being cut off by the US, leading to innovations like DeepSeek R1.
• 😀 The return of Donald Trump to the White House brings uncertainty to geopolitics and world trade, with questions about whether he will continue efforts to contain China or seek cooperation.
• 😀 The AI industry is witnessing a significant shift as China's DeepSeek R1 becomes the model of choice for top US university researchers, highlighting China's rapid advancement in tech and innovation.
• 😀 An investing opportunity in the gold sector is highlighted, with Nevada Canyon Gold's innovative business model and potential for growth under Trump's pro-business and pro-mining approach.

Q & A

What is DeepSeek R1 and why is it significant?

DeepSeek R1 is an advanced AI tool developed by a Chinese research lab for deep data analysis. It is significant because it is a competitive model to America's OpenAI, built in just 2 months with a budget of less than $6 million, using dumbed-down GPUs, making it a highly efficient and cost-effective alternative.

Why did China release DeepSeek R1 on the same day as Donald Trump's inauguration?

China released DeepSeek R1 on the same day as Donald Trump's inauguration to send a strong signal to the US government that despite previous sanctions, China has not only survived but thrived, showcasing its ability to develop advanced technology independently.

How does DeepSeek R1 compare to OpenAI in terms of performance and cost?

DeepSeek R1 performs just as well as OpenAI but was developed with half the technology and at a fraction of the cost. It was built for less than $6 million, compared to the billions spent by companies like Google and OpenAI to develop similar models.

What does the release of DeepSeek R1 mean for the future of AI development?

The release of DeepSeek R1 signals a rapidly shrinking barrier to entry in AI development, challenging the current dominance of industry leaders like OpenAI, Google, and Meta. It also highlights the potential for open-source AI tools to democratize access to advanced AI technology.

How has the US government's policy on AI chips affected global AI development?

The US government's policy on AI chips has restricted non-Western countries from developing AI technology by limiting access to advanced chips. This has led to a situation where many countries, including close US allies, are being held back in their AI development efforts.

What was Eric Schmidt's initial stance on China's AI capabilities, and how did it change?

Initially, Eric Schmidt confidently proclaimed that the future of AI was firmly in the United States' control and that the US was well ahead of China by two or three years. However, just six months later, he admitted that Chinese companies were quickly closing the AI gap, expressing surprise at China's rapid progress.

What impact has the US-China trade war had on China's manufacturing and AI industries?

The US-China trade war has resulted in China accelerating its progress in many important industries, including manufacturing and AI. Despite US efforts to contain China, Chinese factories have continued to dominate global manufacturing, and Chinese tech companies have developed innovative solutions like DeepSeek R1.

Why are Silicon Valley executives worried about DeepSeek R1?

Silicon Valley executives are worried about DeepSeek R1 because it demonstrates that China can develop competitive AI technology at a significantly lower cost and in a shorter timeframe. This challenges the dominance of US tech companies and raises questions about the sustainability of their current business models.

What is the potential impact of DeepSeek R1 on the global AI research community?

DeepSeek R1 has become the model of choice for America's top university researchers almost overnight. Its open-source nature allows for greater collaboration and innovation, potentially leading to faster advancements in AI research globally.

How does the performance of a junior gold mining ETF correlate with Donald Trump's presidency?

The performance of a junior gold mining ETF has shown significant appreciation during Donald Trump's presidency, rising over 181% compared to a decline of 88% during the Obama Administration and a 33% fall during the Biden Administration. This suggests that the mining industry may experience a bull market under Trump's pro-business policies.

Outlines

00:00

😀 China's AI Breakthrough and US-China Relations

China unveiled DeepSeek R1, an advanced AI tool for deep data analysis, on the same day Donald Trump was inaugurated as the 47th US president. This move was seen as a signal to the US government, showing China's ability to thrive despite previous sanctions. DeepSeek R1 was developed in just two months with a budget of $6 million, using less advanced GPUs, making it a competitive alternative to America's OpenAI. The timing of the release and the open-source nature of DeepSeek R1 highlight China's rapid progress in AI and pose a significant challenge to US tech dominance. The video also discusses the historical context of US-China trade relations and the impact of US sanctions on China's tech industry.

05:00

😀 Impact of US Policies on China's Tech and Manufacturing

The US government's restrictions on AI chips and trade policies have inadvertently accelerated China's progress in tech and manufacturing. Despite US efforts to contain China, Chinese companies have expanded globally, increasing their market share. The US's attempt to decouple from China has led to a globalization frenzy among Chinese companies, with many implementing 'Going Global' plans. The development of DeepSeek R1 exemplifies China's ability to innovate and develop competitive technology with minimal resources, challenging the dominance of US tech giants like OpenAI and Google. The video also highlights the irony of US trade policies and their impact on global manufacturing dynamics.

10:01

😀 China's Rise in Tech and Innovation

China's DeepSeek R1 has become a model of choice for top US university researchers, showing China's significant progress in AI and innovation. The tool's open-source nature and cost-effectiveness have made it a profound gift to the world. The video discusses the historical skepticism about China's innovation capabilities and how recent developments have proven otherwise. It also highlights the potential for US-China collaboration in AI, given the significant number of top AI researchers with Chinese backgrounds. Additionally, the video explores the implications of Donald Trump's return to the White House on geopolitics and world trade, emphasizing the need for cooperation between the US and China.

15:02

😀 Investing Opportunities with Trump's Return

The return of Donald Trump to the White House is expected to impact various industries, including mineral mining. The video analyzes the performance of a junior gold mining ETF during different administrations, showing significant gains during Trump's previous term. It introduces Nevada Canyon Gold, a company operating in Nevada's premier mining jurisdiction, which has seen a rebound in its stock value with Trump's return. The company's innovative business model, focusing on royalties and streaming, and the potential for deregulation in the mining sector under Trump's administration, present a compelling investment opportunity. The video concludes by encouraging viewers to research further and highlights the historical undervaluation of gold stocks.

Keywords

DeepSeek R1

DeepSeek R1 is an advanced AI tool developed by a Chinese research lab for deep data analysis. It is a significant development in the tech world as it is an immediate rival to America's OpenAI. The video highlights that DeepSeek R1 was developed in just 2 months with a budget of less than $6 million, which is a fraction of the cost compared to the billions spent by Google and OpenAI to build their latest AI large language models. This demonstrates China's rapid progress in AI development and challenges the dominance of industry leaders like OpenAI and Google.

AI large language models

AI large language models are sophisticated AI systems designed to understand and generate human-like text based on the data they have been trained on. In the video, it is mentioned that Google and OpenAI have spent years and billions of dollars to build these models. However, China's DeepSeek R1 has emerged as a competitive model, showing that it is possible to develop high-quality AI models with significantly less time and money. This has raised concerns among Silicon Valley CEOs about the future of the AI industry.

Open source

Open source refers to software or technology that is made freely available for anyone to view, modify, distribute, and use. The video mentions that China's DeepSeek R1 is being made open source, which is a profound gift to the world. This means that anyone can access and utilize this new AI tool, potentially accelerating the development and adoption of AI technology globally. It also signals a rapidly shrinking barrier to entry in AI development, challenging the current dominance of industry leaders.

Tech sanctions

Tech sanctions are restrictions imposed by one country on another to limit the development and use of certain technologies. In the video, it is discussed that the US government passed unprecedented tech sanctions against China in an attempt to contain its rise in the tech industry. However, China's release of DeepSeek R1 on the same day as Donald Trump's inauguration sends a strong signal that China has not only survived these sanctions but has also managed to thrive and develop competitive AI technology.

Global manufacturing

Global manufacturing refers to the production of goods on a global scale. The video highlights that despite America's efforts to reduce China's global position in manufacturing through trade wars and sanctions, China's factories have continued to dominate global manufacturing. In fact, China's share of global industrial production has increased from 24% in 2018 to around 27% today, and is predicted to rise to 45% by 2030. This demonstrates China's resilience and ability to adapt and grow in the face of external challenges.

Semiconductors

Semiconductors are materials that have electrical conductivity between that of a conductor and an insulator, and are essential components in modern electronics. The video mentions that for many years, China imported hundreds of billions of dollars worth of American microchips. However, when the US cut off China's access to these resources, China redirected its efforts into domestic semiconductor companies, which have now become more profitable, capable, and able to invest in research and development. This has contributed to China's progress in both semiconductors and AI.

Innovation

Innovation refers to the process of translating an idea or invention into a good or service that creates value or for which customers will pay. The video emphasizes that finding solutions to complex problems is in the Chinese DNA, and that China has proven its ability to innovate by developing DeepSeek R1 with limited resources and in a short period of time. This challenges the notion that China lacks the ability to innovate, as previously claimed by some experts.

AI arms race

AI arms race refers to the competition between countries to develop and dominate AI technology. The video mentions that with the return of Donald Trump to the White House, there is uncertainty about the future of geopolitics and world trade, and whether the US and China will engage in an AI arms race. The video also highlights that almost half of all top AI researchers globally were born or educated in China, suggesting that cooperation between the US and China would be necessary to influence the future of AI.

Gold mining

Gold mining is the process of extracting gold from the earth. The video discusses an investing opportunity in the gold mining sector, specifically mentioning Nevada Canyon Gold, a junior gold mining company operating in Nevada. The video highlights that gold stocks have been down significantly since 2011, while the actual price of gold has increased nearly 40%. This presents a potential opportunity for investors, especially with Donald Trump's pro-business and pro-mining approach, which could lower costs and expedite project approvals.

Royalties and streaming

Royalties and streaming are financial arrangements in the mining industry where a company secures the rights to a portion of the production from a mine in exchange for upfront payments or ongoing royalties. The video explains that Nevada Canyon Gold uses a unique business model that focuses on royalties and streaming agreements, avoiding the high capital costs of traditional mining operations. This scalable model ensures steady returns without the risks and costs associated with traditional mining ventures.

Highlights

China unveiled DeepSeek R1, an advanced AI tool, on the same day Donald Trump was inaugurated.

DeepSeek R1 is a rival to America's OpenAI, developed in just 2 months for under $6 million.

China's new AI software performs as well as its American counterpart but at a fraction of the cost.

DeepSeek R1 is open source, allowing anyone to view, modify, distribute, and use the software.

The US government's tech sanctions against China have failed to contain China's rise.

China's trade surplus has reached a new record of nearly $1 trillion since the trade war began in 2018.

China's share of global industrial production has risen to 27%, up from 24% in 2018.

America's efforts to contain China have resulted in China accelerating its progress in many important industries.

DeepSeek R1 has become the model of choice for America's top university researchers.

DeepSeek R1's output price is 30 times cheaper than OpenAI.

China has proven that you don't need hundreds of billions of dollars to produce advanced AI software.

Engineers in Silicon Valley are moving frantically to dissect DeepSeek and copy its innovations.

China's ability to innovate has been underestimated, as shown by the development of DeepSeek R1.

Almost half of all top AI researchers globally were born or educated in China.

Nevada Canyon Gold, a junior gold mining company, has seen significant gains with Trump's return to the White House.