I think we’re about to get a crash in 5 hours folks
The companies known as the Magnificent Seven make up over 20% of the global stock market. And a lot of this is based on their perceived advantage when it comes to artificial intelligence (AI).
The big US tech firms hold all the aces when it comes to cash and computing power. But DeepSeek – a Chinese AI lab – seems to be showing this isn’t the advantage investors once thought it was.
DeepSeek doesn’t have access to the most advanced chips from Nvidia (NASDAQ:NVDA). Despite this, it has built a reasoning model that is outperforming its US counterparts – at a fraction of the cost.
Investors might be wondering about how seriously to take this. But Microsoft (NASDAQ:MSFT) CEO Satya Nadella is treating DeepSeek as the real deal at the World Economic Forum in Davos:
“It’s super impressive how effectively they’ve built a compute-efficient, open-source model. Developments like DeepSeek’s should be taken very seriously.”
Whatever happens with share prices, I think investors should take one thing away from the emergence of DeepSeek. When it comes to AI, competitive advantages just aren’t as robust as they might initially look.
It won’t put up with your racist bullshit?
I won’t reply to them because the comment was removed but it’s so funny that they think the “censorship” matters at all. My sibling in Christ, they’re trying to write code for web services with these things, not write an article for the NYT! Who cares what these models say about Tiananmen or Taiwan or Winnie the Pooh?
Oddly, it censors pretty much all 20th century Chinese history (I tried getting it just to tell me about Sun Yatsen, then Hu Jintao, and lastly Mao’s 1949 declaration of the PRC, each time it removed its response).
Maybe that’s the best way to do it, but I feel like there’s got to be a better way to censor.