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.
I don’t get it either. If this makes it easier for smaller companies to run their OWN offline as well as computer hobbyists, etc…won’t it just mean more demand from all the individuals/companies vying to buy hardware to run it?
If I was a large company I sure as fuck would not be using some of the things like Copilot, etc. and sending all my data to a possible competitor. I’d be putting up a bit of cash and figuring out how to use models offline.
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?
I don’t get it either. If this makes it easier for smaller companies to run their OWN offline as well as computer hobbyists, etc…won’t it just mean more demand from all the individuals/companies vying to buy hardware to run it?
If I was a large company I sure as fuck would not be using some of the things like Copilot, etc. and sending all my data to a possible competitor. I’d be putting up a bit of cash and figuring out how to use models offline.
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?