What Is DeepSeek? Should It Be Banned? | February 7, 2025

Summary

The video highlights significant developments in artificial intelligence, focusing on the rise of the Chinese startup Deep Seek and its AI model, R1, which challenges US giants like OpenAI and Google by offering similar capabilities at a fraction of the cost. This breakthrough, achieved despite restrictions on advanced computer chips, has disrupted the AI industry, with R1's success impacting tech stocks. The script also covers the ongoing egg price crisis in the US due to avian flu, consumer demand, and its economic impact. Finally, the video offers lighter moments from Super Bowl athletes and acknowledges school groups watching the show.

Takeaways

• 😀 Deep Seek, a Chinese startup, has developed an AI model, R1, which rivals top U.S. AI technologies like OpenAI's GPT-4 and Google's Gemini, but at a significantly lower cost.
• 😀 Deep Seek's R1 AI was trained with just $5.6 million, a fraction of what U.S. companies have spent, which raises concerns about its efficiency in utilizing resources.
• 😀 Despite restrictions on high-tech chips from the U.S. to China, Deep Seek has achieved strong performance with less powerful AI chips, challenging the conventional cost assumptions in AI development.
• 😀 Deep Seek's R1 AI model has surged in popularity, surpassing ChatGPT on app store charts, with millions of downloads and shaking up the tech industry, especially impacting stocks of AI chip suppliers.
• 😀 Experts are questioning how Deep Seek manages to deliver competitive AI performance at such a low cost, with some skeptical about the company's claims without independent verification.
• 😀 While Deep Seek's R1 is powerful, it currently lacks features like audio or visual input processing that U.S. models like Google's Gemini can handle, indicating some limitations in its functionality.
• 😀 U.S. experts suggest that Deep Seek's AI could face challenges if used for broader purposes, especially in fields like news or government-related services where resistance could arise.
• 😀 The egg shortage in the U.S. has led to a dramatic price increase, with egg prices expected to rise another 20% this year due to factors like avian flu and high consumer demand.
• 😀 The theft of 100,000 eggs from a truck in Pennsylvania highlights the extreme measures some are taking in response to the egg crisis, which has affected both supply and pricing.
• 😀 Waffle House, a major U.S. chain, has implemented a 50-cent surcharge per egg due to rising costs, which significantly impacts its business as eggs are a core menu item.
• 😀 Despite political rhetoric, experts agree that the egg crisis is not something that can be controlled by the government and is primarily driven by industry issues and diseases like avian flu.

Q & A

What is Deep Seek's new AI model called, and what makes it significant?

Deep Seek's new AI model is called R1. It is significant because it is proving to nearly match the capabilities of famous US AI models like OpenAI's GPT-4, Meta's LLaMA, and Google's Gemini, but at a fraction of the cost.

How much did Deep Seek spend to develop its AI model, and how does it compare to its US competitors?

Deep Seek spent $5.6 million developing its AI model R1, which is significantly less than its US competitors who have spent hundreds of millions or even billions of dollars on similar technologies.

Why is Deep Seek's success in AI development surprising, given the US restrictions on AI chip supplies to China?

Deep Seek's success is surprising because the US has restricted the supply of advanced AI chips to China, yet Deep Seek has managed to create a powerful AI model using less capable chips, showing a cost-effective approach to AI development.

What has been the reaction in the stock market to Deep Seek's AI advancements?

Deep Seek's advancements have shaken up Wall Street, causing stocks for leading AI chip suppliers like Nvidia and other tech companies to plunge.

How did Professor Jeffrey Ding evaluate Deep Seek's AI model in comparison to OpenAI's GPT?

Professor Jeffrey Ding found that Deep Seek's R1 performed similarly to OpenAI's GPT in some cases, with a few areas where it might even perform better, though he also posed several challenging questions to evaluate its capabilities.

What is the primary way that Deep Seek has managed to reduce the cost of developing its AI model?

Deep Seek has managed to reduce costs by training smaller, more efficient models that require less computing power, allowing them to achieve high performance without the need for expensive, high-tech chips.

What limitations does Deep Seek's AI model, R1, have compared to US AI models like Google's Gemini?

One limitation of Deep Seek's R1 is that it cannot yet handle multi-modal interactions, such as audio conversations or analyzing images and live video, unlike some US AI models like Google's Gemini.

What future developments will be crucial to understanding Deep Seek's potential in the AI industry?

A key indicator for Deep Seek's future will be how its AI model R1 is used—whether primarily as a productivity tool or for other applications like news sources, as this could affect its acceptance and use in the global market.

What economic factors are contributing to the soaring price of eggs in the US?

The soaring price of eggs is driven by inflation and a severe outbreak of avian flu, which has led to the culling of millions of egg-laying hens, reducing supply and increasing prices.

How has the avian flu outbreak impacted the US egg industry?

The avian flu outbreak has caused the euthanization of over 40 million birds last year alone, with an additional 15 million birds being culled at the start of this year, significantly reducing the egg supply.