Source: Independent Institute
by Jonathan Hofer
“DeepSeek is a relatively new startup founded in 2023 …. After piloting a few other LLMs with the financial backing of High Flyer, DeepSeek came out with R1. Why was this all over the news, and why does anyone care? There are a couple of reasons. For one, it showed that while the U.S. has traditionally excelled in software development, China can match and even surpass American tech giants on important AI benchmark tests. The fear is that AI is the new atomic bomb for 21st-century warfare, and America is in an arms race. Two, news of R1’s efficiency caused the largest single-day stock market loss in history, with Nvidia losing $589 billion in market capitalization because some fear a drop in demand for GPUs, which are used to process the data used to train the models.” (02/03/25)
https://blog.independent.org/2025/02/03/is-america-poised-to-overreact-to-deepseek