Okay, so a couple of weeks ago, DeepSeek dropped the R1 🔥
And let me tell you, it shook the world. Everyone started freaking out because, guess what? The DeepSeek R1 outperforms the best AI models on the planet—OpenAI's O1 and O1 Pro.
And here's the kicker: It's totally FREE! Yeah, you heard that right.
So, it’s obvious to believe that OpenAI, Anthropic, and other large AI enterprises are not so happy about it.
Speaking of which, do you remember, when Sam Altman said *“It’s hopeless to compete with OpenAI“—*I think now it has become vice-versa with Deepseek😂
I don’t know how Sam’s gonna respond to this now!😂
Due to rise of Deepseek R1, NVIDIA's stock recently faced a significant decline, dropping approximately 17% and losing nearly $600 billion in market value.
This downturn was primarily triggered by the announcement of the DeepSeek R1. It reportedly achieves performance levels comparable to all the powerful AI models but at a significantly lower cost with limited access to powerful Nvidia chips like A100 or H100.
This lead people to believe that, “We don’t need so as many hardware chips/resources as we think“.
And we can’t blame them.
This emergence of DeepSeek R1, disrupting the entire AI industry, is what experts call the "AI's Sputnik moment”
And I don’t think DeepSeek is going to stop anytime soon.
Whenever something revolutionary happens, so do the accusations—it's practically a package deal! 😂
OpenAI is accusing DeepSeek of stealing their data. Here’s what they mean.
The controversy centers around allegations that DeepSeek used a process called “distillation” to train its model.
Distillation ✴️
Distillation is a technique where a smaller AI model (the “student”) learns from a larger, more advanced model (the “teacher”), making the student model nearly as powerful but much more efficient.
This is commonly used in AI research, but in this case, it’s being suggested that DeepSeek didn’t train its model entirely from scratch.
Instead, it allegedly used responses from OpenAI models, refined them using reinforcement learning, and created a competitive AI—without going through the same costly research process.
U.S. officials, including David Sacks, the AI and crypto czar, have spoken out, saying there is “substantial evidence” of this happening.
“I would love to see that evidence, please😂*”*
He hinted that American AI companies might take steps to block distillation-based training to prevent what he called “copycat models.” This is a very bold statement.
If DeepSeek really trained their model using OpenAI, the only way they could’ve pulled it off is through API calls.
Because let’s be real—there’s no way in hell OpenAI just hands over its models to anyone. They give you a platform, an API to access their model’s outputs, but that’s it. No backstage passes.
So, how exactly did a Chinese company manage to make a massive number of API calls to a US company without OpenAI raising an eyebrow?
OpenAI has rate limits, monitoring, and all the usual safeguards that come with commercial AI services. Even if DeepSeek had multiple API keys, pulling off large-scale data extraction without triggering alarms seems... highly unlikely.
But okay—let’s play along and assume they did get the data. How is that even a crime? They paid for the API, used it to its full potential, and built a better model. Sounds like smart business to me.
So, what’s the problem here? 🤔
I’d love to hear your thoughts on this one...