Deepseek in China has shook the AI world with the release of an open source AI model, which is said to have exceeded Openai on several benchmarks. Even more surprising is the company’s claim that AI technology was developed for only $ 5.6 million.
This number is raised to develop hundreds of millions of companies like Openai and humanity to develop a large language model every year. Meanwhile, high -tech and other high -tech gifts, such as Microsoft, have led $ 800 billion spending in 2025, and Meta predicts $ 600 million to $ 65 billion this year, many of which are directed to NVIDIA GPUs.
Deepseek’s performance was intrigued by Openai and human investors, and as the owner of a major US high -tech stock through Fundrise.
The necessity is the mother of the invention
Deepseek, established by Liang Wenfeng, a former chief of the AI-drive type Quant Hedge Fund High-Flyer in 2023, has adopted an open source approach to AI development. With this strategy, the global developer community can examine, strengthen and innovate software.
DeepSeek claims that the R1 model matches Openai and Meta’s main products on benchmarks such as AIME 2024 (math tasks), MMLU (general knowledge), Alpacaeval 2.0 (Q & A performance), etc. 。 It is also very ranked in Chatbot Arena Leaderboard in UC BERKELEY. All of this is difficult to believe with such a limited resource.
The company’s mobile app, released in early January 2025, has risen to the top of the iPhone download chart in countries such as the United States, Australia, and Britain. -A important differentiation factor from competitors like Openai’s ChatGpt.
How did a small startup with less than 200 employees and half of many personal financial enthusiasts consider it ideal for retirement? Answer may be necessary. When something is essential, innovation continues.
Do whatever you need to survive
In parallel, two teams (my wife and me) who were operated on a modest budget, but were able to effectively compete with the site with the large -scale team of writers, editors, and freelancers. Let’s consider the two teams (my wife and me). I am convinced that we need to lose all and to reconstruct net assets to get all millions of online to support the children. There is nothing that parents do not do for children.
However, if Financial Samurai plays at the same level as Deepseek, this site is like generating about the same traffic as New York Times. Since these results are virtually impossible, it is difficult to believe that DeepSeek spent $ 5.6 million without receiving substantial support from the Chinese government.
The other side of the coin
Alex Wang, based in the United States, a 28 -year -old CEO of Scale AI, tells CNBC:
“There are more H100 in Chinese laboratory than people think,” mentions NVIDIA’s GPU, which is restricted from exports to China. “In my understanding, DeepSeek has about 50,000 H100, which is clearly unable to speak because it violates US export management.”
The logical conclusion is that Deepseek has much more resources than generally published. As the first panic sinks, people with insider knowledge will reveal DeepSeek’s abilities and the true range of support.
What I think will happen, and how I will invest in the AI War
It is clear that US AI companies are not sitting in idols while their future and fate are in crisis. This is what I predict:
The United States adopts an open source AI model to increase efficiency and increase innovation. NVIDIA and other AI chip manufacturers may face a temporary decrease of up to 20 to 25 %, and the AI adoption may continue to rebound as accelerated by Jevon’s paradox. Jevons Paradox states that in the long term, improvement of resource -use efficiency will increase resource consumption. The Trump administration will take additional measures to protect the US AI industry. The announcement of $ 500 billion AI infrastructure investment led by Oracle, Openai and SoftBank indicates how seriously the United States is looking at the race. Large -scale high -tech stocks such as Microsoft, Meta, Apple, Amazon, and Palantir can be up to 10-15 %, but the AI costs are low, so the future profits will increase.
In light of these trends, I buy dips for major US high -tech shares and private AI companies. Reducing costs increases the adoption of AI and ultimately the profitability of these companies.
Jevon’s Paradox explained
Real estate may increase demand
If S & P 500 faces 10 % to 20 % slumps in the next 3-6 months, the interests of the Finance Bonds may decrease as investors seek risky returns. 。
If the yield of the Ministry of Finance declines, mortgage rates will decrease and demand for real estate in the United States will increase. This can remind investors from early 2023 about the disconnection between residential commercial real estate value and stock market. In addition, many people may revisit the idea of converting to concrete assets, such as real estate, which provides both stability and daily utility. 。
I continue to average S & P 500, private AI companies, Big Tech, and housing real estate. Disciplined investment is the most important thing at the moment of market panic. Focusing on long -term goals, whether to retire or secure the future of children, is much easier to develop capital to retreat economy.
One certain thing is that the AI and investment situation have evolved rapidly, creating both risks and opportunities for those who maintain information.
Reader, what do you think about DeepSeek’s open source AI model? Did you think that the company really spent only $ 5.6 million to compete effectively with Openai, Anthropic, Google, Meta, etc.? Is this the beginning of the magnificent 7, or do you think our big technology will innovate their way through the challenge? And how do you develop your capital in the current panic sales?
Note: After confirming all available information from 4:30 am to 6:00 am on January 27, 2025, I wrote this post. After some running on the slope of Lake Taho, update new details.
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