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China's DeepSeek Bombshell Rocks Trump's $500B AI Boondoggle
2025-01-25
[Unz] The future of humanity is being decided as we speak. And it is not being decided on a battlefield in Eastern Europe, or the Middle East or the Taiwan Strait, but in the data centers and research facilities where technology experts create "the physical and virtual infrastructure to power the next generation of Artificial Intelligence." This is a full-blown, scorched-earth free-for-all that has already racked up a number of casualties though you wouldn’t know it from reading the headlines which typically ignore recent ’cataclysmic’ developments. But when President Trump announced the launching of a $500 billion AI infrastructure project (Stargate) on Tuesday just hours after China had released its DeepSeek R1—which "outperforms its rivals in advanced coding, math, and general knowledge capabilities"—it became painfully obvious that the battle for the future ’is on’ in a big way. And this is not a battle that either side can afford to lose. Here’s how technology expert Adam Button summed it up:

Imagine we’re back in 2017 and the iPhone X was just released. It was selling $999 and Apple was crushing sales and building a wide moat around its ecosystem.

Now imagine, just days later, another company introduced a phone and platform that was equal in every way if not better and the price was just $30.

That’s what unfolded in the AI space today. China’s DeepSeek released an opensource model that works on par with OpenAI’s latest models but costs a tiny fraction to operate. Moreover, you can even download it and run it free (or the cost of your electricity) for yourself.
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