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‘Sputnik moment’: $1tn wiped off US stocks after Chinese firm unveils AI chatbot
(www.theguardian.com)
this post was submitted on 28 Jan 2025
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Technology
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ahh... the sound of a bursting bubble.
- plop -
Nah, o1 has been out how long? They are already on o3 in the office.
It’s completely normal a year later for someone to copy their work and publish it.
It probably cost them less because they probably just distilled o1 XD. Or might have gotten insider knowledge (but honestly how hard could CoT fine tuning possibly be?)
Deepseek showed that actually putting thought into the architecture achieves much more than just throwing more hardware at the problem.
This means a) there will be much less demand for hardware, since much more could be run locally on regular consumer devices. And b) the export restrictions don't really work and instead force China to create actually better models.
That means, a lot of the investments into the thousands of AI companies are in jeopardy.
I think “just writing better code” is a lot harder than you think. You actually have to do research first you know? Our universities and companies do research too. But I guarantee using R1 techniques on more compute would follow the scaling law too. It’s not either or.