China just overtook the US in the AI arms race with the release of DeepSeek R1. Moreover, they have open sourced the model.Did DeepSeek just burst the AI bub...
Everybody involved at that level knows the AI hype is a sham, so they have their finger hovering above the “sell” button. Open AI’s valuation and cash burn, for example, assume a much higher revenue in the future – but if this upstart can release a similar product with a fraction of the overhead, that cash burn now becomes a massive liability.
Everybody involved at that level knows the AI hype is a sham, so they have their finger hovering above the “sell” button. Open AI’s valuation and cash burn, for example, assume a much higher revenue in the future – but if this upstart can release a similar product with a fraction of the overhead, that cash burn now becomes a massive liability.
Edit to add a source from a real news outlet instead of shitty YouTube clickbait: https://www.bloomberg.com/opinion/articles/2025-01-27/china-s-ai-deepseek-shows-silicon-valley-s-huge-blindspot