Extra funds are only useful if they can provide a competitive advantage.

Otherwise those investments will not have a positive ROI.

The case until now was built on the premise that US tech was years ahead and that AI had a strong moat due to high computer requirements for AI.

We now know that that isn’t true.

If high compute enables a significant improvement in AI, then that old case could become true again. But the prospects of such a reality happening and staying just got a big hit.

I think we are in for a dot-com type bubble burst, but it will take a few weeks to see if that’s gonna happen or not.

They have made it harder, but it’s not really hard.

Just buy any regulated crypto and convert. Cake Wallet makes it easy, but there are many other ways.

I myself hold Bitcoin and Monero.

There could be some trickery on the training side, i.e. maybe they spent way more than $6M to train it.

But it is clear that they did it without access to the infra that big tech has.

And on the run side, we can all verify how well it runs and people are also running it locally without internet access. There is no trickery there.

They are 20x cheaper than OpenAI if you run it on their servers and if you run it yourself, you only need a small investment in relatively affordable servers.

True, but training is one-off. And as you say, a factor 100x less costs with this new model. Therefore NVidia just saw 99% of their expected future demand for AI chips evaporate

Even if they are lying and used more compute, it’s obvious they managed to train it without access to the large amounts of the highest end chips due to export controls.

Conservatively, I think NVidia is definitely going to have to scale down by 50% and they will have to reduce prices by a lot, too, since VC and government billions will no longer be available to their customers.

Wth?! Like seriously.

I assume they are running the smallest version of the model?

Still, very impressive.

I disagree.

Like it or hate it, crypto is here to stay.

And it’s actually one of the few technologies that, at least with some of the coins, empowers normal people.

Because the silicon valley bros had convinced the national security wonks in the Beltway that it was paramount for national security, technological leadership and economic prosperity.

I think this will go down as the biggest grift in history.

Kevin Walmsley reported on Deepseek 10 days ago. Last week, the smart money exited big tech. This week the panic starts.

I’m getting big dot-com 2.0 vibes from all of this.

https://youtube.com/@inside_china_business

For a moment I thought this was about AI and the stock market.