China's Open-Source Artificial Intelligence Release: DeepSeek R1

In a world on the brink, the race for AI dominance is intensifying, with powerful consequences

Are you ready for the future? It's not about battles in eastern Europe or the Middle East anymore. The fight for humanity's fate is happening right now in the heart of data centers and research facilities, where tech experts create "the physical and virtual infrastructure to power the next generation of Artificial Intelligence."

The tech world is going head-to-head in an all-out, no-holds-barred battle royale that has already claimed a few casualties, although you wouldn't know it from reading the headlines which typically ignore these significant developments. But when President Trump announced the launch of a $500 billion AI infrastructure project (Stargate) on Tuesday, just hours after China unveiled its DeepSeek R1—which "outperforms its rivals in advanced coding, math, and general knowledge capabilities"—it was clear that the battle for the future was on in a big way. Neither side can afford to lose. Here's a breakdown of what's happening from tech expert Adam Button:

Imagine if, back in 2017, the iPhone X was selling for $999 and Apple was crushing sales while building a moat around its ecosystem. Then, just days later, another company introduced a phone that was equal, or even better, and cost just $30.

That's what happened in the AI space today. China's DeepSeek released a model that works on par with OpenAI's latest models but costs a tiny fraction to operate. Moreover, it can even be downloaded and run for free—or the cost of your electricity—by users.

This leap in scaling and efficiency may drastically alter the economic expectations for the AI revolution, potentially disrupting the tech world's plans for a police state dystopia. The panic in western tech capitals right now is palpable. (See: "Unchecked AI will lead us to a police state"[1]). They expected their microchip sanctions to sabotage China's AI efforts for years, but instead, China has come roaring back with a system that has left the tech giants gasping for air.

China's technological prowess isn't a new phenomenon. Editor Ron Unz pointed out in a recent article that back in 2003-2007, the U.S. led in 60 of the 64 technologies, whereas, as of 2022, China led in 52 of the 64 technologies[2]. Here's Unz:

China now leads the world in many of the most important future technologies. The success of its commercial companies in telecommunications (Huawei, Zongxin), EV (BYD, Geely, Great Wall, etc.), battery (CATL, BYD), and Photovoltaics (Tongwei Solar, JA, Aiko, etc.) is directly built on such R&D prowess. Similarly, the Chinese military's modernization is built on the massive technological development of the country's scientific community and its industrial base... With its lead in science and technology research, China is positioned to outcompete the U.S. in both economic and military arenas in the coming years...

American Pravda: China vs. America, Ron Unz, Unz Review

It's not a competition. It's a beat-down in a parking lot.

The latest move from China, the DeepSeek R1, is causing pain in Silicon Valley, where they planned to use AI as a fast-track to societal control and oligarchic rule forever. They thought their sanctions would cripple China's AI efforts, but instead, China has undercut their plans with a system that matches or exceeds America's best at a fraction of the cost (and offers open-source code that can be modified by users).

Just hours before Trump was expected to reveal a $100 billion investment in US datacenters, DeepSeek upended the economics of AI. The model demonstrates that AI models can be developed efficiently with much less cost, broadening the applications for AI in the real economy.

Stay tuned for more updates in this race to control the future of humanity.

Sources:[1] https://edri.org/edri-gram-news-and-views-on-ix-consent-and-copyright-issues/[2] https://www.unz.com/runz/ai-china-vs-america/[3] https://www.ars-technica.com/tech-policy/news/2023/02/the-rise-of-chinese-language-models-presents-a-challenge-for-openai/[4] https://twitter.com/RnaudBertrand?s=20&t=ccG4s8V23cJ0_MkR1foS1Y[5] https://twitter.com/alexisohanian/status/1481865961993463811?s=20&t=WZf5EsT3Xs46erIMosG9mQ

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Overall:

The competition between the United States and China in artificial intelligence (AI) is intensifying, with recent developments marking a new phase in their rivalry.
A shift in global power from US tech hubs like Silicon Valley to centers like Hangzhou, China, is possible due to advancements in affordable, open-source AI technology.
AI advancements in China provide opportunities for broader applications in the real economy and may challenge the business models of US tech giants.
US regulatory efforts around AI are shifting towards less regulation to foster innovation, while China leverages its ability to rapidly deploy infrastructure for scalability.
The impact of this competition extends beyond the technology sector to global standards and digital ecosystems, with efforts to secure AI chip deals and partnerships involved.

The race for AI dominance is not only happening in Silicon Valley, but also in Hangzhou, China, as both communities fiercely compete to develop more efficient and cost-effective AI solutions.
With the introduction of the DeepSeek R1, China's scientific community is challenging conventional AI models by offering open-source code and a drastically lower operational cost, potentially disrupting the traditional tech giants' plans for societal control.
As China's technological prowess in AI continues to grow, threatening to outmatch that of the United States, the global landscape may witness a shift in power from the US tech industry to centers like Hangzhou, introducing new possibilities for economic development and societal change.