The importance of the DeepSeek breakthrough is not in answering Chinese news-related question accurately, it is in the fact that it can answer any question at 1/30th of the cost of comparable AI models.
The inaccuracy can be corrected eventually by Machine Learning. It’s still a formidable competitor.
I can answer lots of questions very cheaply but it’s not about how quickly or cheaply one can generate an answer. It is way more important that an answer be correct. I can give all sorts of reasons why a printer won’t print but people like me because I can make the printer print.
That's because it's being subsidized by the Chinese government (and China has probably recouped their initial investment by selling NVDA short or buying puts).
We're making the same mistake that we did with globalization of industrial manufacturing — yes, we got the short-term benefits of low labor costs, etc., but in the long run we destroyed our own industries, threatening our independence.
Let's not repeat that mistake with AI.
It will never achieve a high degree of accuracy because it can never answer any questions concerning China accurately or truthfully.
It’s only 1/30th the cost because they don’t include a bunch of gov’t subsidizing, and apparently it seems they’ve pirated large chunks of their learning modeling from existing chatbots, which is where the biggest cost savings comes from.