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.
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?
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?