Insights

• DeepSeek Shock, 2nd ‘Sputnik moment’ for US (Sputnik moment: US gov. shocked when Russia launched world first satellite into space)
• Proverb, ‘Necessity is the mother of invention’ was mentioned several times for describing DeepSeek shock
• ‘Distillation’ is key tech terms that make DeepSeek differed from US big tech firms

Miscellaneous Thoughts

• Market belief that a few big tech firms dominate AI market collapsed and more investors will focus on AI start-ups
• Opinions that AI, LLM techs could be commoditized are very surprising and radical

Summary

China’s DeepSeek’s lightweight, open-source AI model that challenges the American AI model is a game-changer in the technology space. This model provides faster, cheaper, and more efficient AI solutions than many traditional American models. They have achieved breakthroughs with limited resources, which is a wake-up call for the US AI industry. This is more than just a technology race, it’s a reassessment of our position and value in the global technology infrastructure. The conditions are now such that the open source model developed by China cannot be dismissed too easily.