Tag Archives: deep-seek

And the bubble said ‘Bang’

This is what we usually see, or at times hear as well. Now I am not an AI expert, not even a journeyman in the ways of AI, But the father of AI namely Alan Turing stated the setting of AI. He was that good as he set the foundation of AI in the 50’s, half a century before we were able to get a handle on this. Oh, and in case you forget what he looks like, he has been immortalised on the £50 note.

And as such I feel certain that there is no AI (at present) and now this bubble comes banging on the doors of big-tech as they just lost a trillion dollars in market value. Are you interested in seeing what that looks like? Well see below and scratch the back of your heads.

We start with Business Insider (at https://markets.businessinsider.com/news/stocks/tech-stock-sell-off-deepseek-ai-chatgpt-china-nvidia-chips-2025-1) where we are given ‘DeepSeek tech wipeout erases more than $1 trillion in market cap as AI panic grips Wall Street’ and I find it slightly hilarious as we see “AI panic”, you see, bubbles have that effect on markets. This takes me back to 2012 when the Australian Telstra had no recourse at that point to let the waves of 4G work for them (they had 3.5G at best) so what did they do? They called the product 4G, problem solved. I think they took some damage over time, but they prevented others taking the lead as they were lagging to some extent. Here in this case we are given “US stocks plummeted on Monday as traders fled the tech sector and erased more than $1 trillion in market cap amid panic over a new artificial intelligence app from a Chinese startup.” Now let me be clear, there is no AI. Not in America and not in China. What both do have is Deeper Machine Learning and LLM’s and these parts would in the end be part of a real AI. Just not the primary part (see my earlier works). Why has happened (me being speculative) is that China had an innovative idea of Deeper Machine Learning and package this innovatively with LLM modules so that the end result would be a much more efficient system. The Economic Times (at https://economictimes.indiatimes.com/markets/stocks/news/worlds-richest-people-lose-108-billion-after-deepseek-selloff/articleshow/117615451.cms) gives us ‘World’s richest people lose $108 billion after DeepSeek selloff’ what is more prudent is “DeepSeek’s dark-horse entry into the AI race, which it says cost just $5.6 million to develop, is a challenge to Silicon Valley’s narrative that massive capital spending is essential to developing the strongest models.” So all these ‘vendors’ and especially President Trump who stated “Emergence of cheaper Chinese rival has wiped $1tn off the value of leading US tech companies” (source: the Guardian). And with the Stargate investment on the mark for about 500 billion dollars it comes as a lightning strike. I wonder what the world makes of this. In all honesty I do not know what to believe and the setting of DeepSeek the game will change. In the first there are dozens of programers who need to figure out how the cost cutting was possible. Then there is the setting of what DeepSeek can actually do and here is the kicker. DeepSeek is free as such there will be a lot of people digging into that. What I wonder is what data is being collected by Chinese artificial intelligence company Hangzhou DeepSeek Artificial Intelligence Co., Ltd. It would be my take on the matter. When something is too cheap to be true, you better believe that there is a snag on the road making you look precisely in the wrong direction. I admit it is the cynic in me speaking, but the stage that they made a solution for 6 million (not Lee Majors) against ChatGPT coming at 100 million, the difference is just too big and I don’t like the difference. I know I might be all wrong here, but that is the initial intake I take in the matter. 

If it all works out there is a massive change in the so called AI field. A Chinese party basically sunk the American opposition. In other news, there is possibly reason to giggle here. You see, Microsoft Invested Nearly $14 Billion In OpenAI and that was merely months ago and now we see that  someone else did it at 43% of the investment and after all the hassles they had (Xbox) they shouldn’t be spending recklessly I get it, they merely all had that price picture and now we see another Chinese firm playing the super innovator. It is making me giggle. In opposition to this, we see all kind of player (Google, IBM, Meta, Oracle, Palantir) playing a similar game of what some call AI and they have set the bar really high, as such I wonder how they will continue the game if it turns out that DeepSeek really is the ‘bomb’ of Deeper Machine Learning. I reckon there will be a few interesting weeks coming up. 

Have fun, I need to lie still for 6 hours until breakfast (my life sucks).

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