The markets went nuts and panicked yesterday when the Chinese AI DeepCheat .....ooops I mean Deepseek was introduced . The claim is that it can function as well as US AI versions at a fraction of the cost . If this is true it is; as Trump donor Marc Andreessen said 'the AI Sputnik moment'
(1) Marc Andreessen ���� on X: "Deepseek R1 is AI's Sputnik moment." / X (https://x.com/pmarca/status/1883640142591853011?utm_source=substack&utm_medium=email)

I believe I am not alone in suspecting this is cheap knock off created by stealing technology and bypassing US export controls

U.S. announces new export controls on China's chip industry (https://www.nbcnews.com/news/world/us-announces-new-export-controls-china-chip-industry-rcna182579)

(Hey the Chinese had to get something for their investment into Quid Pro Joe's Biden Crime Family)

It remains to be seen if the true cost is reflected in the claim. Experts smarter than me say it performs well.

The markets in predictable form tanked on the news . NASDAQ lost over 600 points .

Elon Musk and Scale AI boss Alexandr Wang said curb your enthusiasm .
Wang claimed that the system uses 50,0000 Nvidia H100s Graphics Processing Unit (GPU) that somehow bypassed Joe's export controls .

(1) Evan on X: "The CEO of Scale AI said his understanding is that Deepseek has ~50,000 Nvidia H100s which they can’t talk about https://t.co/MeGEg3dpgh" / X (https://x.com/StockMKTNewz/status/1883868749847265473?utm_source=substack&utm_medium=email)

Zuck is on it .

Meta is reportedly scrambling ‘war rooms’ of engineers to figure out how DeepSeek’s AI is beating everyone else at a fraction of the price (https://www.msn.com/en-us/money/other/meta-is-reportedly-scrambling-war-rooms-of-engineers-to-figure-out-how-deepseek-s-ai-is-beating-everyone-else-at-a-fraction-of-the-price/ar-AA1xXuJY?ocid=msedgntp&pc=HCTS&cvid=fd8a130627004bf6b2b1e47f1a532208&ei=31)

If it is true that this is indeed a product that bypassed US laws ;then appropriate actions are needed by Trump .

In the meantime ;if you use it prepare yourself for a dose of China propaganda and probably some back door spying .


https://preview.redd.it/is-deepseek-really-that-good-v0-l8gr4aup11fe1.jpeg?width=1080&format=pjpg&auto=webp&79f7773e

https://preview.redd.it/is-deepseek-really-that-good-v0-l8gr4aup11fe1.jpeg?width=1080&format=pjpg&auto=webp&79f7773e

Forgot to mention Chinese censorship . Kyle Glen has some examples of that on X

(1) Kyle Glen on X: "DeepSeek seems great. https://t.co/WFDFBri2an" / X (https://x.com/KyleJGlen/status/1883968411556069853)



And data collection

(1) Luke de Pulford on X: "Just fyi, @deepseek_ai collects your IP, keystroke patterns, device info, etc etc, and stores it in China, where all that data is vulnerable to arbitrary requisition from the ���� State. From their own privacy policy: https://t.co/wueJokHcn3" / X (https://x.com/lukedepulford/status/1883893208150937802/photo/1)

While institution investing dumped $589 billion in Nvidia stock Monday ;retail investors took advantage of the dip today. It lost 17% value yesterday . Today with the market still open it has gained back nearly 8 % .



As for security Users should be aware that the Chinese collect data from the device you use and streamline it back to China.

The user's policy is clear about it .


“We store the information we collect in secure servers located in the People's Republic of China.”

DeepSeek’s privacy policies also outline the information it collects about you, which falls into three sweeping categories: information that you share with DeepSeek, information that it automatically collects, and information that it can get from other sources.
DeepSeek’s Popular AI App Is Explicitly Sending US Data to China | WIRED (https://www.wired.com/story/deepseek-ai-china-privacy-data/)