DeepSeek: The Greatest Growth Hack of All Times meets its David in a Chinese Quant.

[usonian]

This is a fantastic article. Long, and you can't skim for missing a great point or pic.

Only a tiny bit that explains the revolution that just happened, and what some of us expected when companies started throwing (🔥 burning 🔥 ) trillions in a race to see who could deliver spend the most, when they all forgot the "innovation" part.

Enjoy.

ScreenSnap:

DeepSeek created the perfect missile to strike at the foundation of the “AI is for big players only” narrative moat, turning Big Tech’s greatest strength (fundraising) into a vulnerability. For whatever reason, US tech companies did not see it coming.

In this new, post R1 world, top end AI models can be trained with the financial means of a medium size business leveraging recipes available in Open Source. Training and operation of these models need orders of magnitude less resources, defeating the “nation state infrastructure spend” entry barrier into the foundation AI club.

In this new world, nobody will make their R&D money back, ever because cheaper AI will be everywhere, commoditized and operated at low margins.

And if this new world is real (a large part of America’s investor sphere is still in the denial stage about that), then Big Tech just burnt massive amounts of investor capital in glorious GPU fires only to be overtaken by a bunch of finance bros doing science for fun (and probably profit). The next earnings call for Sundar, Mark and the AI-bro gang is going to be painful.

https://centreforaileadership.org/resources/deepseeks_narrative_attack/

[underpants]

1. 👀

Looks great. Thanks. Reading later.

[Klarkashton]

2. This is probably the most significant thing going on

Right now in terms of economics. Those bastards thought they were riding the next big wave of free money. It's going to take a few weeks but there is going to be a blood bath.

[usonian]

6. A trillion here, a trillion there. Pretty soon, you're talking serious money.

So I stole the joke.

[MayReasonRule]

3. Great Post - And Fuck Yeah! May The Oligarchs Burn!!!

[EYESORE 9001]

4. I haven't kept up with developments with AI to the extent I would like

but it appears that Big Tech has been outflanked, opening the door to entrepreneurs who take their craft seriously and will develop products that will run circles around the more hidebound big boys.

[dalton99a]

5. Kick