$1.2T has been wiped out of the S&P500 today, arguably on the back of the DeekSeek news. But it is open source. The names on the paper are likely being headhunted as we speak. The breakthroughs of this research mean more powerful AI, sooner. Regardless of how efficient AI is, the global demand for compute power (and AI) is up and to the right. Yes some lofty valuations are being blown out (nvidia) but on net these developments mean more productivity, more growth.

🇺🇸 SCOTT JENNINGS: TRUMP TOLD COLOMBIA FAFO “Colombia refused to take migrants. Trump said, ‘We’re going to enter the F around and find out portion of this conversation.’ This is Trump-Vance. We mean business.”

This is a pic from Jan 2017. Today I paid $15.69 for it. I like don’t even know what to do with this information

The Yen carry trade collapsed in August 2024, the trading day after Japan raised rates from 0.1% to 0.25%. Japan raised rates from 0.25% to 0.5% on Friday, so the carry trade hits on Monday. Seems convenient the DeepSeek news hits at the same time.

DeepSeek founder Liang Wenfeng: >> Studies machine vision at Zhejiang University >> At 30 in 2015, launches High-Flyer quant hedge fund >> Makes a fortune (now $8B AUM) >> Wants to build “human” level AI as side hustle and pitches partners but they initially sceptical >> Buys 10,000 H800 chips in 2021 and brings over his top hedge fund employees (all have tons of experience squeezing juice out of Nvidia GPUs for the fund) >> Launched DeepSeek in 2023 and hires dozens of PhDs from top Chinese universities (Peking, Tsinghua and Beihang) >> Pays top top top salary for tech talent only matched by Bytedance in China…wants DeepSeek to be leading “local” company >> US export restrictions force DeepSeek team to get creative and they do, finding new training methods to make LLM models (V3, r1) competitive with OpenAI, Anthropic, Gemini, Grok, LLama etc at ~1/20th the cost >> Training costs not exactly apples-to-apples but novel methods and clear improvements in efficiency (also questions around copying other models, larger H-100 clusters they maybe can’t talk about and/or CCP support) >> Open sources and publishes methods (r1 reasoning paper has 200+ authors) >> DeepSeek just hit top of App Store ***

If you want to use DeepSeek but don't want all your convos going to the CCP, use All convos are private, stored only in your local browser. Must be Pro user to access DeepSeek Venice.ai