🟢 A perspective on the DeepSeek freakout...
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DeepSeek is freaking out the US economy. You probably read about the news this week many times over and saw many comments about this.
As a quick reminder, DeepSeek, a Chinese AI startup founded in 2023 by former hedge fund manager Liang Wenfeng, has developed an AI model named R1 that rivals leading systems like OpenAI's ChatGPT. Remarkably, DeepSeek achieved this using minimal funding (allegedly) and older Nvidia chips, circumventing US export restrictions on advanced technology. This led to significant market reactions in the West, including a 17% drop in Nvidia's market value in just one day. The sudden realization that China might not be losing the AI race after all was labeled a "Sputnik moment," akin to when the US realized that Russia might win the space race.