A summary of the Chinese AI situation, for the uninitiated.
These are scores on different tests that are designed to see how accurate a Large Language Model is in different areas of knowledge. As you know, OpenAI is partners with Microsoft, so these are the scores for ChatGPT and Copilot. DeepSeek is the Chinese model that got released a week ago. The rest are open source models, which means everyone is free to use them as they please, including the average Tumblr user. You can run them from the servers of the companies that made them for a subscription, or you can download them to install locally on your own computer. However, the computer requirements so far are so high that only a few people currently have the machines at home required to run it.
Yes, this is why AI uses so much electricity. As with any technology, the early models are highly inefficient. Think how a Ford T needed a long chimney to get rid of a ton of black smoke, which was unused petrol. Over the next hundred years combustion engines have become much more efficient, but they still waste a lot of energy, which is why we need to move towards renewable electricity and sustainable battery technology. But that's a topic for another day.
As you can see from the scores, are around the same accuracy. These tests are in constant evolution as well: as soon as they start becoming obsolete, new ones are released to adjust for a more complicated benchmark. The new models are trained using different machine learning techniques, and in theory, the goal is to make them faster and more efficient so they can operate with less power, much like modern cars use way less energy and produce far less pollution than the Ford T.
However, computing power requirements kept scaling up, so you're either tied to the subscription or forced to pay for a latest gen PC, which is why NVIDIA, AMD, Intel and all the other chip companies were investing hard on much more powerful GPUs and NPUs. For now all we need to know about those is that they're expensive, use a lot of electricity, and are required to operate the bots at superhuman speed (literally, all those clickbait posts about how AI was secretly 150 Indian men in a trenchcoat were nonsense).
Because the chip companies have been working hard on making big, bulky, powerful chips with massive fans that are up to the task, their stock value was skyrocketing, and because of that, everyone started to use AI as a marketing trend. See, marketing people are not smart, and they don't understand computers. Furthermore, marketing people think you're stupid, and because of their biased frame of reference, they think you're two snores short of brain-dead. The entire point of their existence is to turn tall tales into capital. So they don't know or care about what AI is or what it's useful for. They just saw Number Go Up for the AI companies and decided "AI is a magic cow we can milk forever". Sometimes it's not even AI, they just use old software and rebrand it, much like convection ovens became air fryers.
Well, now we're up to date. So what did DepSeek release that did a 9/11 on NVIDIA stock prices and popped the AI bubble?
Oh, I would not want to be an OpenAI investor right now either. A token is basically one Unicode character (it's more complicated than that but you can google that on your own time). That cost means you could input the entire works of Stephen King for under a dollar. Yes, including electricity costs. DeepSeek has jumped from a Ford T to a Subaru in terms of pollution and water use.
The issue here is not only input cost, though; all that data needs to be available live, in the RAM; this is why you need powerful, expensive chips in order to-
I'm not going to detail all the numbers but I'm going to focus on the chip required: an RTX 3090. This is a gaming GPU that came out as the top of the line, the stuff South Korean LoL players buy…
Or they did, in September 2020. We're currently two generations ahead, on the RTX 5090.
What this is telling all those people who just sold their high-end gaming rig to be able to afford a machine that can run the latest ChatGPT locally, is that the person who bought it from them can run something basically just as powerful on their old one.
Which means that all those GPUs and NPUs that are being made, and all those deals Microsoft signed to have control of the AI market, have just lost a lot of their pulling power.
Well, I mean, the ChatGPT subscription is 20 bucks a month, surely the Chinese are charging a fortune for-
Oh. So it's free for everyone and you can use it or modify it however you want, no subscription, no unpayable electric bill, no handing Microsoft all of your private data, you can just run it on a relatively inexpensive PC. You could probably even run it on a phone in a couple years.
Oh, if only China had massive phone manufacturers that have a foot in the market everywhere except the US because the president had a tantrum eight years ago.
So… yeah, China just destabilised the global economy with a torrent file.
