It affects China’s Deepseek. But is it a ‘fast follow -up’ enough in artificial intelligence?

adminJanuary 28, 2025

0 6 3 minutes read

It affects China’s Deepseek. But is it a ‘fast follow -up’ enough in artificial intelligence?

American stock exchanges trembled on Monday and announced that China has created a talented, cheap, artificial intelligence machine. The largest cloud on artificial intelligence, the West’s enthusiasm for the West, questiones the effectiveness of America’s export controls and that the United States is poured into the expensive cutting ends of technology.

China Startup Deepseek says that the AI assistant uses less advanced chips than competitor models and the trainer is less cost. Unlike the Bills of the West, the Chinese model was developed only $ 5.6 million with a prediction.

“Are we going to spend $ 500 billion to reach the border so that China can find a way to copy our homework on the dollar?” asked for Gregory AllenWadhwani AI Center Director at the Center for Strategic and International Research, podcast Friday.

Why did we write this

China’s latest technology company challenges the investment strategies and concepts of how much expertise is needed to be successful in artificial intelligence. If history serves, the Sunday may soon see that the players in AI are dramatic.

On Monday, the AI company shares in Wall Street. The price of Nvidia, the leader in the AI chips, fell approximately 17%because it evaluated the possibility that China investors could threaten US technology profits. The S&P 500 fell approximately 1.5%and the technology fell heavy NASDAQ 3%.

However, experts warned against panic. Analysts, it is important not to exaggerate the Chinese threat. Deepseek’s new AI model is both real success and Beijing swallowing. China shows the ability to simplify US models and creates a way for less and less powerful computer chips to offer answers to the more expensive models of America. Deepseek said that Openai, released four months ago, could compete with a version of Chatgpt, released four months ago.

In many ways, Deepseek’s model is parallel to China’s “knockout” production power. And in this case, he put the Deepseek product on the public property, which means that everyone can use it for free. Until Monday, it had become the best free application in Apple’s App Store.

Testing export controls, propaganda tools

Deepseek positions China as a rapid follower of American technology. However, this screams far from challenging the US position at the last point.

According to a Bank of America/Merrill Lynch research note, “Concern, based on existing data, we believe in Deepseek’s model… We rely on the larger basic models to be developed first”. In other words, followers cannot be leaders.

Technology also serves as a propaganda tool for Beijing. By showing China’s ability, the regime hopes to prove that US export controls do not work. However, analysts argue that they only show the failure of 2022 export controls under President Joe Biden. These controls have been bored since then.

It is no coincidence that Deepseek explained that Mr. Biden has put AI software in the public space last week after Mr. Biden has published three new export restrictions aimed at reducing the ability to reach the most developed chips.

“As a country of freedom, he should lead the world in the development of the AI, not America-China, President Biden said on January 15 at his farewell address.

Analysts say export controls cannot stop technology flow. However, they may make it more difficult and expensive for China to compete and keep up with the new public-private joint initiative that can invest up to $ 500 billion in the AI infrastructure of President Donald Trump.

Public Property and Silver Primer for US companies

And while putting Deepseek’s model as a public property, it can recoil with a propaganda win in the short term. US companies now have the Chinese code to simplify their search engines. And with better access to powerful chips, Americans can create their own cutting edge AI models at a much lower cost and perhaps offer them free of charge.

Which model will the global market adopt? Technology that can access the data to the Chinese government? Or, where are western private sector products, probably geopolitical risks lower?

For investors, the bigger question that Deepseek posed. If many companies can operate with cheaper, good enough artificial intelligence, how much investment in the latest technology of technology should flow?

Currently, these investments are losing money. If history is any guide, it will take several years to make a profit in a busy race that can win leaders in one or two. Think of Microsoft’s windows on personal computers. Or Google in web search.

Something sure. If investors begin to weigh more carefully against the costs of Creating AI, the cloud of doubt on investors may grow.

adminJanuary 28, 2025

0 6 3 minutes read