DeepSeek, a rising Chinese AI company, has sparked significant concern in Silicon Valley following its latest model's strong performance compared to those from established leaders like OpenAI and Meta. Its models, priced significantly lower than competitors, triggered a drastic market reaction, resulting in a staggering $1 trillion loss in market valuation. While many investors feared DeepSeek's competitive pricing strategy, Meta's AI chief Yann LeCun claims that the anxiety is misplaced, stressing that the substantial investments made in AI are predominantly for inference and not the expected competition over base training costs.
DeepSeek's emergence as a low-cost AI competitor has triggered widespread concern among US tech companies, raising questions about the scalability of American AI investments.
Yann LeCun argues that the panic surrounding DeepSeek is unwarranted, emphasizing the misleading perception of how billions in AI investment are primarily used.
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