Big Tech in panic mode... Did DeepSeek R1 just pop the AI bubble?

00:03:36
https://www.youtube.com/watch?v=Nl7aCUsWykg

Summary

TLDRDeep Seek's R1 model has revolutionized AI performance, surpassing competitors like OpenAI and Claude across key benchmarks, including math tasks. This paradigm shift poses a serious threat to Big Tech, particularly Nvidia, which has enjoyed a monopoly in AI hardware due to proprietary systems. With R1's cost-effectiveness and capability to run on consumer-grade devices, investor confidence in traditional AI business models is shaken, drawing parallels to historical technological shifts. OpenAI is attempting to remain competitive with new offerings, but the future landscape of AI technology is rapidly evolving, fueled by advances from companies like Deep Seek.

Takeaways

  • 🚀 Deep Seek's R1 model outperforms major competitors!
  • 💰 R1 developed at a fraction of the cost: under $10 million.
  • 📉 Nvidia stock drops nearly a trillion dollars in value.
  • 🔧 OpenAI introduces new features to compete with R1.
  • 📊 AI can now run on standard consumer hardware.
  • ⚠️ Market fears over sustainability of AI profits grow.
  • 🛰️ Compared to the historical Sputnik moment in tech.
  • 🖥️ Open sourcing AI models shifts the industry landscape.
  • 👁️ Future technologies include brain chips and quantum computing.

Timeline

  • 00:00:00 - 00:03:36

    Deep Seek, a Chinese company, recently released the open-source R1 model that surpasses OpenAI's latest offerings, stirring significant attention and concern in the tech industry. The R1 model outperformed competitors in critical benchmarks and tests, indicating a substantial shift in AI capabilities. Unlike traditional models that require intensive resources, R1 was developed as a side project with a relatively low budget, posing a threat to the profitability of major tech players like Nvidia, whose stock suffered as a result. The situation is likened to the 'Sputnik moment' when the US was caught off-guard by a technological breakthrough from Russia, prompting fears among investors about the future of AI market.

Mind Map

Video Q&A

  • What did Deep Seek release recently?

    Deep Seek released the R1 open-source AI model.

  • How does R1 compare to OpenAI's models?

    R1 outperforms OpenAI's $200 01 reasoning model and other leading models.

  • What impact did Deep Seek's release have on Nvidia?

    Nvidia's stock value dropped significantly due to competition from Deep Seek.

  • How much did it cost to develop R1?

    R1 cost less than $10 million to develop.

  • What does OpenAI offer in response to Deep Seek?

    OpenAI has released the 01 Mini model and a new feature called Operator.

  • What is the significance of Deep Seek's technology?

    It demonstrates that powerful AI can run on cheaper consumer-grade hardware.

  • What does the future hold for AI technology according to the report?

    There's anticipation for advancements in brain chips, quantum computers, and nanotechnology.

  • What was the reaction on Wall Street to these developments?

    Wall Street panicked and wiped out nearly a trillion dollars in market value due to increased competition.

  • What historical event is compared to Deep Seek's launch?

    Deep Seek's advancements are compared to the Sputnik moment of 1957.

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  • 00:00:00
    last week Chinese company deep seek
  • 00:00:02
    shocked the world when they walked right
  • 00:00:03
    over open AI moe by releasing the open
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    source R1 model not only does it beat
  • 00:00:08
    their $200 01 reasoning model but it
  • 00:00:10
    also beats Claude Sonet in Gemini it
  • 00:00:12
    wins on key benchmarks but more
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    importantly it passes My Vibe test along
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    with many others on the internet as long
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    as you don't ask it what happened on
  • 00:00:19
    April 15th 1989 R1 even wins at math
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    which is crazy considering open AI had
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    the answers in advance over the last few
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    days normies have been learning about R1
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    and it went viral to become the number
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    one app America this is a big problem
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    for big Tech because in order for the
  • 00:00:33
    Griff to keep on grifting artificial
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    intelligence needs to be hard and take
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    thousands of gpus to pull off but deeps
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    R1 cost less than $10 million and was
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    actually the side project of a hedge
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    fund where their only goal is to create
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    long-term social value Wall Street is
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    terrified and Nvidia stock is in for a
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    blood bath today Nvidia has been the
  • 00:00:50
    primary beneficiary of the AI boom but
  • 00:00:52
    the whole bubble just got one-shotted by
  • 00:00:54
    a brutal reality check in today's video
  • 00:00:56
    we'll find out how deep seek just
  • 00:00:57
    changed the course of history it is
  • 00:00:59
    January 26 7 2025 and you're watching
  • 00:01:01
    the code report Big Tech is literally
  • 00:01:03
    shaking right now is Sam ultman coped
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    with a dramatic tweet a revolution can
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    neither be made nor stop the only thing
  • 00:01:08
    that can be done is for one of several
  • 00:01:10
    of its children to give it Direction by
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    Dent to victories I'm not sure if that's
  • 00:01:14
    Napoleon Dynamite or Napoleon boner part
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    but the funny thing is he damn near got
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    ratioed by someone with an anime profile
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    picture that said it's not that deep Bro
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    just release a better model in addition
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    to try to remain competitive with deep
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    seek open AI is also offering its 01
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    Mini model to free users but that's not
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    all they also Al released a new thing
  • 00:01:30
    called operator which gives AI access to
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    a browser and allows it to click on
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    buttons and fill out forms on your
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    behalf which is a game changer because
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    that means you can have chat GPT go
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    attend your court appointed DUI courses
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    or anything else you might have to do
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    online in the future humans will no
  • 00:01:44
    longer need websites or uis only apis
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    that can interact with the AIS operator
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    is currently only available to people on
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    the $200 plan and overall it gets pretty
  • 00:01:53
    mixed reviews that's cool and all but
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    the Chinese are really crushing it right
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    now deep seek is one thing but they also
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    released this thing called hun you on 3D
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    which can generate 3D meshes and
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    textures and that's huge for people like
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    me who have spent years failing to get
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    good at blender but the crazy thing
  • 00:02:06
    about deep seek is that it was just a
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    side project that cost very little money
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    to produce even Mark Andre called it one
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    of the most amazing and impressive
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    breakthroughs he's ever seen a profound
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    gift to the world and because of that
  • 00:02:17
    the stock market is panicking and just
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    wiped out nearly a trillion dollars in
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    value with Nvidia being The Biggest
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    Loser followed by other chip companies
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    like Taiwan semiconductor and broadcom
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    you see nvidia's had basically a
  • 00:02:27
    monopoly on AI training for the last
  • 00:02:29
    decade because they have better Linux
  • 00:02:31
    drivers than AMD and all the machine
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    learning algorithms are optimized for
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    libraries like Cuda which is proprietary
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    and can only run on Nvidia gpus and they
  • 00:02:38
    have the infrastructure to connect all
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    these gpus together at scale as AI
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    models get bigger and more popular is so
  • 00:02:44
    do the profits of Nvidia but someone got
  • 00:02:46
    deep seek running on a few Apple M2
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    Ultras and that's the 680 billion
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    parameter top-of-the-line model and
  • 00:02:51
    that's terrifying if you're a tech
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    investor pouring billions of dollars
  • 00:02:54
    into AI because if the best
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    state-of-the-art model can operate on
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    relatively cheap consumer hardware and
  • 00:02:59
    it's free and open source and developed
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    in China how are we going to make any
  • 00:03:02
    mother fing money people are calling
  • 00:03:04
    this the Sputnik moment when Russia
  • 00:03:05
    launched the first artificial satellite
  • 00:03:07
    into space in 1957 the United States was
  • 00:03:09
    shocked at the time and it took over a
  • 00:03:11
    decade to make a comeback when America
  • 00:03:12
    made its Pinnacle achievement of filming
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    a man on the moon in Nevada that's a
  • 00:03:16
    joke of course and even the smartest
  • 00:03:17
    technology in the world deep seek
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    believes in the moonlandings we had a
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    good run on this AI hype train but now
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    it's time to move on I'm looking forward
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    to brain chips quantum computers
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    artificial meat printers nanor robots
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    digital resurrection and tens of other
  • 00:03:30
    Tech that will make the world a better
  • 00:03:31
    place this has been the code report
  • 00:03:33
    thanks for watching and I will see you
  • 00:03:34
    in the next one
Tags
  • Deep Seek
  • AI
  • R1 Model
  • Nvidia
  • OpenAI
  • Technology
  • Stocks
  • Innovation
  • Benchmark Testing
  • Competitive Landscape