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Why DeepSeek Doesn’t Matter
The new AI model is a hack, not an “extinction level event.” Here’s why.
This week, the Chinese company DeepSeek sent shockwaves through the AI industry when it released a new, free chatbot that seemed to rival the performance of OpenAI’s flagship GPT-o1.
DeepSeek claims that they trained their DeepSeek Chatbot for only $6 million — a tiny fraction of the billions spent by OpenAI and its other American rivals.
Markets promptly freaked out. In a single day, Nvidia, which supplies high-end computer chips to the AI industry, lost over $580 billion in market value. That’s the largest drop in value in Wall Street history.
Commentators called DeepSeek “an extinction-level event” for the venture capital firms funding America’s wildly expensive AI systems.
As an AI expert, I’ve extensively tested the new DeepSeek chatbot.
I’m not impressed, and I expect that DeepSeek will be more of a tiny blip than a catastrophic event for the AI space.
