George Dourakoglou đť•Ź
@yourgwriter
China Destroyed Silicon Valley. They built an AI model that beats OpenAI, Google, and Meta. It only cost them $6M (vs OpenAI's $17.9 billion). Here's how DeepSeek is changing AI & why Sam Altman & the US government are worried:🧵
The story starts with an unexpected player. High Flyer Quant, an $8 billion Chinese hedge fund. They launched DeepSeek with one goal: “solve the mystery of AGI with curiosity.” Unlike OpenAI’s detailed plans, DeepSeek stayed secretive (but they were about to change AI forever):
Their model had 3 big breakthroughs: • Beat GPT-4 and Claude in advanced math tests • Outperformed Meta’s Llama in reasoning tasks • Dominated coding competitions and bug detection While US giants spent billions, DeepSeek did it with scraps…
The AI industry faced 3 big challenges: • The US banned China from advanced Nvidia H100 chips • Export controls limited computing power • Tech transfer rules were strict But DeepSeek turned these challenges into advantages…
Their technical genius changed everything: • They mastered 8-bit floating-point training (while the US still used FP16). • They built stable mixture-of-experts models others couldn’t. • They did it all with cheaper H800 GPUs. Silicon Valley’s edge disappeared overnight…
The cost comparison is staggering: • DeepSeek: $5.6M total • OpenAI: $5B per year • Google: $50B on infrastructure • Microsoft: $13B OpenAI investment They proved billions aren’t necessary…
Their breakthroughs amazed experts with better stability, smarter data use, and innovative training designs. They achieved in 60 days what others took 6 months to accomplish. Even Sam Altman couldn’t ignore it…
The implications are huge: • Developers are switching to DeepSeek • The US chip ban made China more efficient • Open-source is overtaking closed systems • AI costs are dropping by 30x But here’s the real game-changer:
DeepSeek’s plan is smart. They made everything open-source, priced APIs at 10¢ per million tokens, and let developers create freely. This bold move challenged the US AI monopoly, all based on one key idea…
They proved 3 industry myths wrong: • You don’t need top chips to compete • Billions in funding can hold you back • Constraints drive innovation The numbers don’t lie…
• Trained on 14.8 trillion tokens • Used 2,048 H800 GPUs (vs 30,000+ for GPT-4) • Completed training in 60 days • Matched or beat benchmark scores Even Eric Schmidt said, “China has caught up in a way that is remarkable.” Time will tell if US companies can adapt...
Thanks for reading! A few words about me: I dropped out of uni at 18 and built an X ghostwriting business, generating $1.5M+ for clients and 500M+ impressions in just 1.5 years. Make sure to follow me @yourgwriter for more brain-expanding threads. Have a blessed day!
