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Over the past week, everyone in the AI world has been talking about Deepseek R1. The open-source community is excited, big tech companies are worried, and even mainstream media is noticing how important last week’s R1 launch was.
P/s: We’re stepping away for a day - January 30th - to celebrate Lunar New Year in style. 🧧✨
To everyone embracing this beautiful tradition, here’s wishing you a joyful and prosperous New Year! Cheers to fresh beginnings and good vibes all around.
What are on FIRE 🔥
AI INSIGHTS
🤖 AI Stocks Tumble After DeepSeek R1's Disruption
The AI market went into a frenzy after Chinese startup DeepSeek announced its R1 model. The model does advanced AI tasks without relying on high-powered semiconductor chips—causing a major ripple effect across the tech world.
Key takeaways:
Nvidia Takes a Hit: Nvidia’s stock dropped 17% on Monday to close at $118.58. It was Nvidia’s worst day on the market since March 16, 2020, which was early in the Covid pandemic. Investors are worried R1’s low-cost efficiency could challenge Nvidia’s dominance in AI hardware.
Chipmakers Struggle Too: Other big players like AMD, Broadcom, and Micron also saw significant losses as the market reevaluated demand for expensive chips.
Utilities Fall: Even utility stocks—key to powering AI infrastructure—fell 3.6%, reflecting broader market concerns about AI growth.
But not everyone took a loss:
Tech Giants Stay Resilient: Apple and Meta posted gains, with Apple up 3.3%. Other mega-cap tech companies, like Microsoft and Alphabet, saw smaller declines.
Why it matters: Chinese startup DeepSeek is making waves with AI tech that rivals ChatGPT but costs much less to develop. Analysts estimate its cost at just $6 million, compared to the billions spent by giants like OpenAI and Google, which plan to invest $1 trillion in AI in coming years. Here’s why DeepSeek’s approach is revolutionary:
Massive Cost Savings:
Training costs: $100 million → $5 million.
GPUs needed: 100,000 → 2,000.
API costs: 95% cheaper.
Innovative Engineering:
Rethought AI design to reduce memory use by 75%.
Introduced a “multi-token” system for faster and more accurate processing.
Built specialized “expert systems” that only activate relevant parameters, cutting hardware needs dramatically.
Open Source Advantage:
DeepSeek’s code and technical papers are public, making AI development accessible to smaller players.
Impact on Big Tech and Nvidia:
Nvidia’s high-margin GPU business is under threat if AI can run on gaming GPUs.
DeepSeek’s disruption challenges the dominance of tech giants by lowering barriers to entry.
A Smaller Team, Bigger Results:
DeepSeek’s team of fewer than 200 achieved results better than large teams at Meta and others.
The Takeaway:
DeepSeek’s breakthrough makes AI cheaper and more accessible, forcing the industry to innovate beyond throwing money and hardware at problems. This could be a turning point, much like when PCs replaced mainframes or cloud computing reshaped tech.
And the best part? It’s all open source—you can test it right now
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TODAY IN AI
AI HIGHLIGHTS
🎁 Sam Altman confirms free ChatGPT users will access OpenAI's advanced o3-mini model soon. Meanwhile, enjoy new Canvas features to boost your creativity.
🌍 OpenAI CEO Sam Altman says AI growth could lead to changes in how we organize our lives, opening discussions about new ways of living.
🧬 Anthropic CEO Dario Amodei predicts AI could double lifespans by 2030, speeding up biology breakthroughs like curing genetic diseases and defeating most cancers.
🚨 Chinese AI startup DeepSeek, known for its powerful R1 and V3 models, paused new registrations due to cyberattacks.
💰 Mark Zuckerberg announced a $60-65B plan for 2025, aiming to lead AI with Meta AI and Llama 4. Goals: 1GW compute power, 1.3M GPUs, and 1B users.
DAILY AI FUNDRAISING
ElevenLabs raised $250M at a $3-3.3B valuation, tripling its value in a year. Known for AI voice tech, it powers 36+ businesses, gaming, and publishing.
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NEW EMPOWERED AI TOOLS
🤖 Operator is OpenAI’s first agent designed for in-browser tasks.
📱 Perplexity Assistant is an Android assistant that controls phone apps and handles complex tasks.
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AI QUICK HITS
🎙️ xAI Adds Voice Mode Using Grok and ElevenLabs Models (Link)
🖼️ DeepSeek Releases Advanced Image Model Family for AI Users (Link)
🍎 Apple Brings Expert to Improve Siri and Fix AI Issues (Link)
🧠 AI Struggles to Understand Certain People's Words Accurately (Link)
✍️ AI Models Fail Humanity’s Last Exam with Under 10% Score (Link)
AI JOBS
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The AI Fire Team
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