AI is not just powerful. What’s really worrying is that DeepSeek has made it cheap, too | John Naughton

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The Guardian 12h ago

AI is not just powerful. What’s really worrying is that DeepSeek has made it cheap, too | John Naughton - The Guardian

Quick Summary:

The proximate cause of this chaos was the news that a Chinese tech startup of whom few had hitherto heard had released DeepSeek R1, a powerful AI assistant that was much cheaper to train and operate than the dominant models of the US tech giants – and yet was comparable in competence to OpenAI’s o1 "reasoning” model.

The AI startup has upended the industry by developing a model that costs much less to produce – and is available free to a universe of tinkerersNothing cheers up a tech columnist more than the sight of $600bn being wiped off the market cap of an overvalued tech giant in a single day.

It was the biggest one-day slump for any company in history, and it was not alone – shares of companies in semiconductor, power and infrastructure industries exposed to AI collectively shed more than $1tn in value on the same day.