DeepSeek has effectively destroyed OpenAI and all venture capital-driven, closed American AI marketing machines. May the whole thing rest in small pieces.
this post was submitted on 03 Apr 2025
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A place for all those who loathe AI to discuss things, post articles, and ridicule the AI hype. Proud supporter of working people. And proud booer of SXSW 2024.
AI, in this case, refers to LLMs, GPT technology, and anything listed as "AI" meant to increase market valuations.
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I've said it often before.
LLM's are really great for many use cases. Transcribing, translating, summarizing, editing, code generation, etc.
But the marginal difference between the cheap models like DeepSeek and the top-of-the-line is low.
So take transcribing, translating, summarizing and editing. Why would anyone spend top dollar when DeepSeek does it basically free?
The potential market for the state of the art models is very limited and will never recoup the 100s of billions being invested.