Right but my understanding is you still need Open AIs models in order to have something to distill from. So presumably you still need 500 trillion GPUs and 75% of the world’s power generating capacity.
The message that OpenAI, Nvidia, and others which bet big on AI delivered was that no one else could run AI because only they had the resources to do that. They claimed to have a physical monopoly, and no one else would be able to compete. Enter Deepseek doing exactly what OpenAI and Nvidia said was impossible. Suddenly there is competition and that scared investors because their investments into AI are not guaranteed wins anymore. It doesn’t matter that it’s derivative, it’s competition.
Right but my understanding is you still need Open AIs models in order to have something to distill from. So presumably you still need 500 trillion GPUs and 75% of the world’s power generating capacity.
The message that OpenAI, Nvidia, and others which bet big on AI delivered was that no one else could run AI because only they had the resources to do that. They claimed to have a physical monopoly, and no one else would be able to compete. Enter Deepseek doing exactly what OpenAI and Nvidia said was impossible. Suddenly there is competition and that scared investors because their investments into AI are not guaranteed wins anymore. It doesn’t matter that it’s derivative, it’s competition.