DeepSeek, a new Chinese AI company, has emerged as a competitor to American firms like OpenAI and Nvidia by providing advanced AI models at significantly reduced costs. Its capabilities have reportedly surpassed those of established U.S. technology companies in independent tests, leading to a decline in U.S. tech stocks and raising concerns in Silicon Valley and Wall Street. Co-hosts Kara Swisher and Scott Galloway discuss this disruption on their Pivot podcast, highlighting the urgency with which American companies are analyzing the implications of DeepSeek’s rapid success.
This is a really interesting story. I think we have discussed the amount of spending on AI that U.S. companies do - the price of chips, the run-up of Nvidia. But there's a new AI model on the scene that's smart, cheap, and made in China. It's called DeepSeek, and it's causing a panic in Silicon Valley, which is paying a lot of attention, and also on Wall Street.
DeepSeek has reportedly outperformed models from OpenAI, Meta, and Anthropic in some third-party tests, and it operates at a fraction of the cost of those models using fewer high-end chips.
Nvidia has shed something like a half a trillion dollars, which, basically, if you take out Tesla, is the value of the entire global automobile industry. So this is pretty dramatic.
Yann LeCun from Meta was saying they're doing a cheap and dirty version. The stuff the U.S. companies are doing is much more advanced.
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