DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.
The reasoning is that people will stop buying their most expensive hardware offerings. This doesn’t make much sense either. Someone will come up with something clever to do with all that new compute, and then the demand for expensive hardware will be back again.
I understand why this is terrible news for OpenAI. Their entire competitive edge was that they’ve invested billions to build their GPT models. Anyone who wants to get to their levels must do the same investments.
If what’s being said about DeepSeek is true, then their entire competitive edge has just vanished overnight. Billion dollar investment: gone. It’s going to be hard for them to make the return they hoped to make from their investment.
Nvidia hasn’t lost their competitive edge. They’re still making the best hardware for AI computing. The demand for AI compute is likely going to increase.
It’s also embarrassing for OpenAI. How could they have missed this?
Agreed, I would think that hardware might still be turned to other uses like protein folding, and mining, possibly?
Personally, I think the “market” is usually filled with lots of hysterics pushing it both up and down and this is possibly just another example. I picture these stock guys as a precursor to all the dipshit Youtube “techfluencer” types (sidebar: sigh, what the hell has happened to my industry? Many of these people seem like they are one step away from video feeds moms unboxing useless cheap junk, but instead, it’s with the latest programming language or frontend Javascript framework. Apparently these types have lots of clueless followers thinking this is how to guide their careers in IT? WTAF. ) always with the hot takes and the clickbait thumbnails. Oh, and now these two groups work hand-in-glove - you can find stockbro YT hot takes all over the place reacting to DeepSeek, too. :)
The reasoning is that people will stop buying their most expensive hardware offerings. This doesn’t make much sense either. Someone will come up with something clever to do with all that new compute, and then the demand for expensive hardware will be back again.
I understand why this is terrible news for OpenAI. Their entire competitive edge was that they’ve invested billions to build their GPT models. Anyone who wants to get to their levels must do the same investments.
If what’s being said about DeepSeek is true, then their entire competitive edge has just vanished overnight. Billion dollar investment: gone. It’s going to be hard for them to make the return they hoped to make from their investment.
Nvidia hasn’t lost their competitive edge. They’re still making the best hardware for AI computing. The demand for AI compute is likely going to increase.
It’s also embarrassing for OpenAI. How could they have missed this?
Agreed, I would think that hardware might still be turned to other uses like protein folding, and mining, possibly?
Personally, I think the “market” is usually filled with lots of hysterics pushing it both up and down and this is possibly just another example. I picture these stock guys as a precursor to all the dipshit Youtube “techfluencer” types (sidebar: sigh, what the hell has happened to my industry? Many of these people seem like they are one step away from video feeds moms unboxing useless cheap junk, but instead, it’s with the latest programming language or frontend Javascript framework. Apparently these types have lots of clueless followers thinking this is how to guide their careers in IT? WTAF. ) always with the hot takes and the clickbait thumbnails. Oh, and now these two groups work hand-in-glove - you can find stockbro YT hot takes all over the place reacting to DeepSeek, too. :)