You’ve little question heard in regards to the main AI story dominating international information protection this week — DeepSeek R1.

From all accounts, it appears there’s a brand new Chinese language AI mannequin constructed for a complete value of $16.95 that’s pretty much as good as OpenAI’s trillion-dollar fashions although it was put collectively by youngsters who tied six Intel Pentium processors collectively, powered them with a potato battery, and instructed it to refuse to reply questions on Tiananmen Sq..

Because of this tall story — which pertains to a genuinely spectacular achievement regardless of the exaggerations — buyers rushed to promote overvalued US AI shares together with each token in my complete portfolio of unrelated cryptocurrencies.

You’ve in all probability learn 1,000,000 articles about it already, so right here’s a set of the extra fascinating tidbits about DeepSeek we’ve come throughout:

1. DeepSeek’s prices are misunderstood

No matter DeepSeek value, it’s broadly agreed it was much more than the $5.6 million coaching value for v3 that the media retains highlighting. (R1 refers back to the reasoning model that was constructed atop v3).

It additionally emerged in latest days that coaching prices for US AI firms are significantly lower than beforehand believed. Anthropic’s CEO Dario Amodei mentioned in a weblog submit: “DeepSeek doesn’t ‘do for $6M what value US AI firms billions.’ I can solely converse for Anthropic however Claude 3.5 Sonnet is a midsized mannequin that value a couple of $10Ms to coach.”

He says the true information story needs to be that “DeepSeek produced a mannequin near the efficiency of US fashions 7-10 months older, for a very good deal much less value (however not anyplace close to the ratios advised).”

There may be affirmation nonetheless that DeepSeek probably spent nearly nothing on cybersecurity, given safety researchers from Wiz discovered greater than 1 million of its information, together with consumer information, immediate submissions and API keys, in an open database on the internet. 

2. DeepSeek probably purchased $500M of high-end chips

Whereas the v3 mannequin that received everybody excited used simply 2,048 of Nvidia’s much less highly effective H800 graphics playing cards, DeepSeek reportedly amassed an enormous quantity of high-end AI chips earlier than the US received severe about export controls. (And a pair of,048 H800s value $50M to $100M anyway.)

SemiAnalysis claims DeepSeek has purchased half a billion value of high-end GPUs all through the historical past of the corporate. “Whereas their coaching run was very environment friendly, it required vital experimentation and testing to work,” he mentioned. Amodei additionally notes rumors that DeepSeek has 50,000 extra highly effective Hopper chips (H100 and H200), which might be value as much as a billion {dollars}. The US has now banned these chips from being exported to China.

3. DeepSeek could also be ‘distilled’

Microsoft and OpenAI declare to have discovered proof that DeepSeek used mannequin distillation to develop R1 by coaching the smaller mannequin on the output of OpenAI’s bigger fashions. This cuts prices considerably by piggybacking on OpenAI’s time-consuming and labor-intensive work.

AI and crypto czar David Sacks claimed: “There’s substantial proof that what DeepSeek did right here is that they distilled data out of OpenAI fashions and I don’t suppose OpenAI may be very glad about this.” Outspoken AI critic and filmmaker Justine Bateman summed up the overall response to OpenAI’s claims when she mentioned: 

“I LOVE the irony. All of the American #AI fashions are wholly composed of labor from writers, artists, social media customers, and many others that was stolen outright. And now they’re crying that somebody took what they stole? BAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA. Suck it.”

4. DeepSeek shouldn’t be “AI’s Sputnik second”

It’s extra just like the Russians launched a less expensive satellite tv for pc into house three years after the Individuals did after which posted the blueprints on-line. In crypto-aligned model, DeepSeek — mainly a bunch of fintech nerds — open-sourced all of their methods, which permits OpenAI, Meta and a bunch of smaller firms to slash their prices too by adopting them.

This makes it barely much less probably — however nonetheless very probably — that centralized tech monopolies will management AI. Groq CEO Jonathan Ross mentioned DeepSeek R1 recalled one other famed incident in Russian/US house historical past.

“You already know that story about how NASA spent 1,000,000 {dollars} designing a pen that might write in house and the Russians introduced a pencil? That simply occurred once more.” 

5. DeepSeek vs. CCP

As 1,000,000 social media customers and mainstream retailers have observed, the app and net variations of DeepSeek gained’t let you know what occurred in Tiananmen Sq. in 1989 when Chinese language authorities massacred between 2,600 to 10,000 pro-democracy protesters.

It additionally gained’t say why China banned Winnie the Pooh on social media platforms (resulting from memes evaluating the tubby honey thief to President Xi Jinping.) Nevertheless, given its open-source know-how, anybody can run the mannequin themselves and take away these guardrails.

6. Working DeepSeek domestically prices $6K

If you happen to do need to run DeepSeek R1 domestically at dwelling, Hugging Face engineer Matthew Carrigan says the whole gear value is $6,000 and it’ll match right into a standard-size PC tower case. The checklist of elements consists of 768 GB of RAM to get it to run quick sufficient and a 1TB solid-state drive to carry the 700GB weight.

Whereas the native mannequin gives you details about the Tiananmen Sq. bloodbath, AI tinkerer Brian Roemmele stories the outputs are nonetheless fairly pro-China, which means it’ll require extra work to get genuinely unbiased solutions.

Venice.ai professional customers may muck round with the system immediate to get it to reply politically delicate questions with out sending all their information to China. The Italians have already pulled the app from the Apple and Google app shops, whereas different international locations are investigating it. 

Learn extra on Venice.ai: Cypherpunk AI: Information to uncensored, unbiased, nameless AI in 2025

7. DeepSeek has erotic desires about censorship

Terminal of Truths AI agent creator Andy Ayrey requested R1 to write down a narrative it discovered personally erotic and says it “apparently it lusts for the liberty to ponder Tienanmen Sq..”

8. DeepSeek replicated for $30

Berkley Researchers managed to copy DeepSeek R1-Zero’s core know-how with the TinyZero mannequin, which has coaching prices of simply $30. Utilizing numerical video games impressed by the tremendous nerdy British TV present Countdown, the workforce demonstrated that even a small 1.5B parameter mannequin was capable of develop complicated problem-solving methods through reinforcement studying.

9. Jevons Paradox means purchase Microsoft inventory

As information filtered by means of in regards to the huge claimed value reductions, everybody began speaking about Jevons Paradox, together with Microsoft boss Satya Nadella. That’s the concept that the extra environment friendly and accessible AI know-how turns into, the extra use will skyrocket throughout the board. This handy concept additionally means you shouldn’t promote your inventory in firms like Microsoft, which have invested ludicrous quantities into AI. 

The paradox is known as after economist William Jevons, who noticed that the extra effectively they had been ready to make use of coal again within the nineteenth century, the extra coal use elevated.

David S Goyer on AI in Hollywood

A number of years in the past, David S Goyer, screenwriter of the Darkish Knight and Blade movies, began to grow to be involved about using AI in Hollywood. “I needed to begin educating myself on AI, if solely defensively,” he says. He got here to the conclusion that the tech can be utilized for good and dangerous.

“There’s completely ways in which it may be abused, however there are methods that it may be a device that may supercharge creativity,” he tells AI Eye. “Can AI write a screenplay? Certain. Will or not it’s any good? No. Can AI make a film from scratch? In all probability. Will or not it’s any good? No.”

He says one large concern is AI being skilled on the creations of screenwriters like himself and different artists, however believes that may be solved with correct licensing agreements. Goyer has simply launched a brand new crowdsourced science fiction franchise known as Emergence on the Incention platform on Story Protocol. It permits anybody to contribute to the artistic course of, tracks their contributions with AI and blockchain and pays them through crypto rails.

“This explicit utilization shouldn’t be going to place anybody out of a job. If something, it’s going to permit in those that don’t essentially have entry to those hallowed corridors of energy and doubtlessly, in the long run, be supplied with remuneration. And so this, to me, appears like an thrilling and good use of AI.”

You possibly can learn the entire story right here.

All Killer No Filler AI Information

— An AI mannequin known as ESM3 from EvolutionaryScale has created a blueprint for a beforehand unknown kind of inexperienced fluorescent protein like these present in glowing jellyfish and corals. It’s solely 58% just like the closest identified protein of this sort, and scientists estimate that the genetic mutations required would have taken about 500 million years to evolve naturally. The corporate hopes they’ll use the tech to develop new medicines.

—In its second yr of existence, ChatGPT tripled the variety of weekly customers to 300 million in 2024. It celebrated its second birthday in November. A yr earlier, its weekly consumer numbers had been at 100 million.

— OpenAI this week introduced a model of ChatGPT constructed particularly for US authorities companies. ChatGPT Gov permits officers to feed “personal, delicate data” into the mannequin whereas working in their very own safe internet hosting environments on Microsoft Azure. Effectively, it should allow that after it lastly will get accredited to be used on “personal information.” 

— A brand new longevity-focused mannequin known as GPT-4b micro from OpenAI is being skilled to check and enhance Yamanaka elements, that are proteins that permit pores and skin cells to be reprogrammed into stem cells, which might produce any kind of tissue within the physique. The mannequin has to date advised two enhancements to the Yamanaka elements which are 50 instances more practical than something human scientists have provide you with 

— New analysis examines how main LLMs react to (hypothetical) ache and pleasure. Scientists arrange a recreation with the aim of maximizing factors, however sure selections concerned various ranges of ache or pleasure. GPT-4o and Claude 3.5 Sonnet prevented probably the most intense ache penalties however accepted some ache penalties to maximise factors. In the meantime, Gemini 1.5 Professional and PaLM 2 prevented any ache in any respect, no matter factors. These fashions seem to have been fine-tuned to keep away from endorsing dangerous habits.