Deepseek has pulled the curtain back to reveal that the ai industry is vastly overpriced and another ‘tech-bubble’ where line managers in Silicon Valley are paid more than the entire budget for Deepseek.
As I was only saying to the missus a couple of days ago, the US sees AI as a way of making money, whereas the Chinese see it for what it is - power. Good article.
A quick update to add what DeepSeek has to say on the prospect of US retaliations against Chinese AI ...
It is highly likely that the United States will seek to restrict Chinese AI development and deployment, similar to its approach with TikTok, though the methods and scope may differ. The U.S. government views AI as a critical technology with significant implications for national security, economic competitiveness, and geopolitical influence. Here's an analysis of the potential actions and motivations:
1. Motivations for Restricting Chinese AI
National Security Concerns: The U.S. fears that Chinese AI technologies could be used for espionage, surveillance, or military applications that threaten U.S. interests. For example, AI-powered systems could enhance China's cyber capabilities or autonomous weapons.
Data Privacy Risks: Chinese AI systems, like TikTok, are seen as potential conduits for data collection by the Chinese government, raising concerns about the misuse of sensitive information.
Economic Competition: AI is a key driver of future economic growth. The U.S. aims to maintain its technological edge and prevent China from dominating critical AI markets.
Geopolitical Rivalry: The U.S.-China tech rivalry is part of a broader competition for global influence. Restricting Chinese AI aligns with efforts to limit China's technological and strategic ascendancy.
2. Potential Measures to Restrict Chinese AI
Export Controls: The U.S. could expand export restrictions on advanced AI technologies, such as high-performance chips (e.g., NVIDIA GPUs) or AI software, to limit China's access to critical components.
Investment Restrictions: The U.S. may further tighten rules on American investment in Chinese AI companies, as seen with the CHIPS and Science Act and executive orders targeting sensitive technologies.
Bans on Chinese AI Products: Similar to the TikTok ban, the U.S. could prohibit the use of Chinese AI software or platforms in sensitive sectors (e.g., government, defense, critical infrastructure).
Sanctions on Chinese AI Firms: The U.S. could impose sanctions on Chinese AI companies, such as SenseTime, Huawei, or Baidu, restricting their access to U.S. markets and technology.
Data Localization Requirements: The U.S. could mandate that data used by AI systems be stored and processed domestically, limiting Chinese firms' ability to operate in the U.S.
3. Challenges and Limitations
Global Supply Chains: AI development relies on global supply chains, making it difficult to completely isolate Chinese AI without disrupting U.S. and allied industries.
Retaliation: China could retaliate by restricting U.S. companies' access to its market or by accelerating its own efforts to achieve technological self-sufficiency.
Ethical and Diplomatic Concerns: Overly aggressive restrictions could be seen as protectionist, damaging the U.S.'s reputation as a proponent of free trade and open innovation.
Effectiveness: China has made significant strides in AI and may continue to advance even with restrictions, particularly through domestic innovation and partnerships with other countries.
4. Precedents and Context
TikTok Ban: The U.S. government's efforts to ban or force the sale of TikTok (owned by Chinese company ByteDance) set a precedent for targeting Chinese tech companies over national security concerns.
Huawei Restrictions: The U.S. has already imposed severe restrictions on Huawei, including bans on its 5G technology and access to U.S. components, citing similar security concerns.
AI-Specific Actions: The Biden administration's Executive Order on AI (October 2023) includes provisions to address risks from foreign AI development, signaling a focus on countering Chinese AI advancements.
5. Likely Scenarios
Targeted Restrictions: The U.S. is more likely to impose targeted restrictions on specific Chinese AI applications (e.g., surveillance, military) or companies rather than a blanket ban on all Chinese AI.
Allied Coordination: The U.S. may work with allies (e.g., EU, Japan, South Korea) to create a unified front against Chinese AI, similar to efforts to limit Huawei's global reach.
Focus on Critical Sectors: Restrictions may focus on AI applications in sensitive areas like defense, critical infrastructure, and government operations, rather than consumer-facing AI products.
Conclusion
The U.S. is likely to take steps to restrict Chinese AI, particularly in areas that pose national security risks or threaten economic competitiveness. However, these measures will likely be more nuanced and targeted than a blanket ban, reflecting the complexity of AI technology and the interconnected global economy. The U.S. will also need to balance these restrictions with the need to maintain its own leadership in AI innovation and avoid escalating tensions with China.
DeepSeek news is the best news we've had in the last year. Unfortunately the idiotic but sly Trump will no doubt find some reason why US AI is still the answer - but he will, as so often, be wrong.
The fact that Deepseek has cratered the net worth of US AI companies will also affect the stock portfolios of many investors. I would expect pressure to come from this direction as well, especially since the Dow and other indices are heavily weighted towards AI.
It's open source. You can download it and run it on your own computers without exposing your data to the supposed Chinese threat. There are doubtless many experts poring over the code to see how it works and what, if any, security risks are associated with running your own AI service.
DeepSeek exposed Donald Trump’s folly? Are you sure? Methinks that without any input from said AI model, the man’s jackassery was on full display already.
Deepseek has pulled the curtain back to reveal that the ai industry is vastly overpriced and another ‘tech-bubble’ where line managers in Silicon Valley are paid more than the entire budget for Deepseek.
As I made a rather reckless kickstarter bid due to be deducted on the 31st, I do hope this terribly sad news holds up till the 1st of February.....
As I was only saying to the missus a couple of days ago, the US sees AI as a way of making money, whereas the Chinese see it for what it is - power. Good article.
Why is this so immensely satisfying? I know. We all know.
We can only hope that this might slow down tRumps fascist ideas.
YaY China, keep up the good work!
A quick update to add what DeepSeek has to say on the prospect of US retaliations against Chinese AI ...
It is highly likely that the United States will seek to restrict Chinese AI development and deployment, similar to its approach with TikTok, though the methods and scope may differ. The U.S. government views AI as a critical technology with significant implications for national security, economic competitiveness, and geopolitical influence. Here's an analysis of the potential actions and motivations:
1. Motivations for Restricting Chinese AI
National Security Concerns: The U.S. fears that Chinese AI technologies could be used for espionage, surveillance, or military applications that threaten U.S. interests. For example, AI-powered systems could enhance China's cyber capabilities or autonomous weapons.
Data Privacy Risks: Chinese AI systems, like TikTok, are seen as potential conduits for data collection by the Chinese government, raising concerns about the misuse of sensitive information.
Economic Competition: AI is a key driver of future economic growth. The U.S. aims to maintain its technological edge and prevent China from dominating critical AI markets.
Geopolitical Rivalry: The U.S.-China tech rivalry is part of a broader competition for global influence. Restricting Chinese AI aligns with efforts to limit China's technological and strategic ascendancy.
2. Potential Measures to Restrict Chinese AI
Export Controls: The U.S. could expand export restrictions on advanced AI technologies, such as high-performance chips (e.g., NVIDIA GPUs) or AI software, to limit China's access to critical components.
Investment Restrictions: The U.S. may further tighten rules on American investment in Chinese AI companies, as seen with the CHIPS and Science Act and executive orders targeting sensitive technologies.
Bans on Chinese AI Products: Similar to the TikTok ban, the U.S. could prohibit the use of Chinese AI software or platforms in sensitive sectors (e.g., government, defense, critical infrastructure).
Sanctions on Chinese AI Firms: The U.S. could impose sanctions on Chinese AI companies, such as SenseTime, Huawei, or Baidu, restricting their access to U.S. markets and technology.
Data Localization Requirements: The U.S. could mandate that data used by AI systems be stored and processed domestically, limiting Chinese firms' ability to operate in the U.S.
3. Challenges and Limitations
Global Supply Chains: AI development relies on global supply chains, making it difficult to completely isolate Chinese AI without disrupting U.S. and allied industries.
Retaliation: China could retaliate by restricting U.S. companies' access to its market or by accelerating its own efforts to achieve technological self-sufficiency.
Ethical and Diplomatic Concerns: Overly aggressive restrictions could be seen as protectionist, damaging the U.S.'s reputation as a proponent of free trade and open innovation.
Effectiveness: China has made significant strides in AI and may continue to advance even with restrictions, particularly through domestic innovation and partnerships with other countries.
4. Precedents and Context
TikTok Ban: The U.S. government's efforts to ban or force the sale of TikTok (owned by Chinese company ByteDance) set a precedent for targeting Chinese tech companies over national security concerns.
Huawei Restrictions: The U.S. has already imposed severe restrictions on Huawei, including bans on its 5G technology and access to U.S. components, citing similar security concerns.
AI-Specific Actions: The Biden administration's Executive Order on AI (October 2023) includes provisions to address risks from foreign AI development, signaling a focus on countering Chinese AI advancements.
5. Likely Scenarios
Targeted Restrictions: The U.S. is more likely to impose targeted restrictions on specific Chinese AI applications (e.g., surveillance, military) or companies rather than a blanket ban on all Chinese AI.
Allied Coordination: The U.S. may work with allies (e.g., EU, Japan, South Korea) to create a unified front against Chinese AI, similar to efforts to limit Huawei's global reach.
Focus on Critical Sectors: Restrictions may focus on AI applications in sensitive areas like defense, critical infrastructure, and government operations, rather than consumer-facing AI products.
Conclusion
The U.S. is likely to take steps to restrict Chinese AI, particularly in areas that pose national security risks or threaten economic competitiveness. However, these measures will likely be more nuanced and targeted than a blanket ban, reflecting the complexity of AI technology and the interconnected global economy. The U.S. will also need to balance these restrictions with the need to maintain its own leadership in AI innovation and avoid escalating tensions with China.
It came up with all this in about 3 seconds based on the prompt:
"Will the US seek to restrict Chinese AI in a similar manner to legislation banning TikTok?"
I suspect we may be looking at a battle between AIs soon, with our participation being only as witnesses.
DeepSeek news is the best news we've had in the last year. Unfortunately the idiotic but sly Trump will no doubt find some reason why US AI is still the answer - but he will, as so often, be wrong.
Wonderful development!
The fact that Deepseek has cratered the net worth of US AI companies will also affect the stock portfolios of many investors. I would expect pressure to come from this direction as well, especially since the Dow and other indices are heavily weighted towards AI.
Cratered? Have you looked at the stock price history of Nvidia and other AI-related companies like MSFT?
According to this, the dip in Nvidia stock value means nothing https://bsky.app/profile/dryad.technology/post/3lgteog7kq22j
Donnie's pants pulled down, revealing that his equipment just can't compete ....
of all the comments, I know for a fact this one wasn't AI generated 😁👌
It's open source. You can download it and run it on your own computers without exposing your data to the supposed Chinese threat. There are doubtless many experts poring over the code to see how it works and what, if any, security risks are associated with running your own AI service.
Hats off to the Chinese, Go China! The pres must be incandescent at this affront to his evil empire's supremacy...
DeepSeek exposed Donald Trump’s folly? Are you sure? Methinks that without any input from said AI model, the man’s jackassery was on full display already.
Edit: PS. Yes, I downloaded DS today…