A few thoughts on DeepSeek – and why you can't trust what you read
DeepSeek's rapid rise in the App Store raises skepticism about its development and funding, with concerns over credibility and potential market disruption, particularly affecting Nvidia and reflecting geopolitical strategies in AI.
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DeepSeek, a new AI application, has quickly risen to the top of the App Store, prompting skepticism about its rapid success. Charles Archer discusses the potential origins of DeepSeek, suggesting it may have reverse-engineered existing models or received substantial support from Chinese resources, including Nvidia GPUs. He raises concerns about the credibility of DeepSeek's claims regarding its development costs and timeline, noting that the Chinese government tightly controls private finance, which complicates the narrative of a small, independent startup. Archer highlights the implications of DeepSeek's success for the AI market, particularly regarding competition with established players like OpenAI and Alphabet. He warns that if DeepSeek's claims are exaggerated, it could lead to a significant market correction, especially for Nvidia, which is heavily reliant on AI startups. The article also touches on the broader context of China's ambitions in AI and the potential for misinformation to influence global investment strategies. Archer concludes by questioning whether DeepSeek represents a genuine breakthrough or a strategic maneuver by China to disrupt the US tech market.
- DeepSeek has rapidly gained popularity, raising questions about its development and funding.
- Concerns exist regarding the credibility of DeepSeek's claims and the influence of the Chinese government.
- The success of DeepSeek could disrupt the AI market and impact Nvidia's dominance.
- The narrative surrounding DeepSeek may reflect broader geopolitical strategies in the AI sector.
- The potential for market correction looms if DeepSeek's claims are proven exaggerated.
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4 commentsArcher also warns that if DeepSeek’s model is genuine, it could trigger a collapse of the AI bubble, similar to the dot-com crash, by flooding the market with unused Nvidia GPUs and slowing AI hardware demand. He concludes by questioning whether DeepSeek is a breakthrough or a strategic move by China to shift market dynamics.
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