What is DeepSeek And Why Is Everyone Freaking Out About It?

Summary

This video explores the groundbreaking impact of a small Chinese startup, Deep Seek, that caused an 18% drop in Nvidia's stock price by using just $6 million worth of older Nvidia chips to create an advanced AI model. The video delves into Deep Seek's unique approach to AI, leveraging pure reinforcement learning to teach the AI more efficiently. It also examines the controversy surrounding the company, including potential ties to OpenAI's models and questions about censorship. The narrative touches on the shifting dynamics in AI development, where efficiency and open-source collaboration may be the future, challenging the traditional power-driven model.

Takeaways

• 😀 A small Chinese startup, Deep Seek, caused an 18% drop in Nvidia's stock price with only $6 million worth of computer chips.
• 😀 Deep Seek's AI models were built using only 2,000 older Nvidia chips, costing about $5.6 million, challenging the belief that expensive chips are required for powerful AI.
• 😀 Deep Seek's AI uses Pure Reinforcement Learning, learning through trial and error, a method that is more efficient than traditional approaches.
• 😀 The founder of Deep Seek, Liang Wong Fun, co-founded a top Chinese hedge fund specializing in AI-driven trading, demonstrating expertise in both AI and business.
• 😀 Reports indicate that Deep Seek's AI often provides inaccurate answers (83% of the time) and refuses to answer questions about China (85% of the time), potentially due to government censorship.
• 😀 There is controversy surrounding Deep Seek, with claims that it may have used OpenAI’s models to train its own AI, raising concerns about intellectual property and originality.
• 😀 The race to develop AI is shifting from raw computing power to efficiency, with a focus on smarter, more optimized approaches to AI learning.
• 😀 Restrictions on AI chip exports to China may not be as effective as expected in slowing down China’s AI progress, as evidenced by Deep Seek's success.
• 😀 Open-source AI development is becoming more important than keeping AI technology secretive, as Deep Seek has made its code available for public use.
• 😀 The global AI competition is evolving, with countries like China and North America taking different approaches—China favors open-source models, while North America tends to lean toward closed-source models.
• 😀 Deep Seek’s emergence represents a shift in how AI is thought about and developed, challenging Western notions of AI superiority and prompting a reevaluation of global AI strategies.

Q & A

How did a small startup in China cause a drop in Nvidia's stock price?

A small Chinese startup, Deep Seek, caused an 18% drop in Nvidia's stock price by using just $6 million worth of older Nvidia chips to build their AI model, demonstrating that high performance in AI doesn't necessarily require the vast resources typically associated with it.

What makes Deep Seek's approach to AI different from others?

Deep Seek's approach to AI is different because they use a more efficient learning method called 'Pure Reinforcement Learning,' where the AI learns through trial and error, similar to how a child learns by touching a hot stove and getting burned.

What controversy surrounds Deep Seek's AI regarding its performance?

Deep Seek's AI is reported to provide inaccurate answers 83% of the time when asked about news, and it refuses to answer 85% of questions about China, potentially due to government censorship in China.

Who is behind Deep Seek and what is his background?

Deep Seek was founded by Liang Wong Fun, who previously co-founded a top hedge fund in China called High Flyer, specializing in AI-driven trading. His experience in both AI and business makes him a key figure in this venture.

What does the controversy regarding OpenAI and Deep Seek imply?

There are claims that Deep Seek may have used OpenAI's models to train their AI, which could be seen as copying someone's work but making it appear different, raising ethical concerns around AI development.

Why is the race to develop better AI not just about raw power anymore?

The race to develop better AI is shifting towards efficiency rather than just raw power. Deep Seek’s use of older, less expensive Nvidia chips is a prime example of achieving high AI performance without relying on massive resources.

How are AI chip restrictions affecting China's AI development?

AI chip restrictions intended to slow down China’s AI progress might not be as effective as planned, as evidenced by Deep Seek’s ability to build a powerful AI model with limited resources, suggesting that alternative methods are being explored.

What is the significance of 'Pure Reinforcement Learning' in AI development?

Pure Reinforcement Learning is significant because it allows AI to learn from mistakes through trial and error, which is more efficient than traditional methods and could lead to faster and more adaptable AI systems.

How is the development of AI becoming a competition between countries?

AI development is increasingly becoming a competition between countries, with the U.S. and China taking different approaches—North America tends to be more closed-source, while China embraces open-source models, highlighting the geopolitical stakes in AI's future.

What is the potential future impact of Deep Seek's approach on global AI development?

Deep Seek’s innovative and cost-effective approach to AI development could significantly impact global AI progress, potentially influencing other countries and companies to rethink their strategies, either embracing open-source AI or re-evaluating the efficiency of their methods.