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Intel's Former CEO Says the Market Is Getting DeepSeek Wrong After AI Chip Stock Rout
Yahoo! News ^ | 1/27

Posted on 01/27/2025 11:19:26 AM PST by nickcarraway

Gelsinger took to X on Monday to suggest that the market's assumptions were wrong. He said that instead of reducing demand, making computing "dramatically cheaper" and more efficient to use — as DeepSeek appears to have done — "will expand the market for it." The former Intel boss, who retired from the company in December after struggling to capitalize on the AI boom, also suggested that the Chinese engineers at DeepSeek "had limited resources, and they had to find creative solutions" to squeeze performance out of their models.

The AI industry has insisted that models become smarter when powered with more computing power in the form of chips loaded in data centers, where they are trained and hosted. Due to tough export controls, Chinese companies have struggled to access the best chips from America. That said, DeepSeek has not explicitly said how much computing power is behind the R1 model it released last week. Gelsinger's views echo those of others in the AI industry, who feel the market reaction to DeepSeek's claims of greater computing power efficiency has been overblown.

Wharton professor Ethan Mollick wrote on X that he's "not sure why people assume this will make compute less valuable," adding that "more efficient models mean that those with compute will still be able to use it to serve more customers and products at lower prices & power impact."

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; China; Culture/Society; News/Current Events
KEYWORDS: ai; ccp; chat; china; computers; cyberwarfare; deepseek; ethanmollick; gelsinger; intc; intel; internet; nasdaq; nvidia; patgelsinger; redchina; stockmarket; tsmc
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I'm not sure they are addressing the main concern.
1 posted on 01/27/2025 11:19:26 AM PST by nickcarraway
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To: nickcarraway

https://memory-alpha.fandom.com/wiki/Fabrini


2 posted on 01/27/2025 11:20:09 AM PST by Varsity Flight ( "War by 🙏 the prophesies set before you." I Timothy 1:18. Nazarite warriors. 10.5.6.5 These Days)
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To: nickcarraway

What’s their AI chip copied from the Pentium 4 ,LOL


3 posted on 01/27/2025 11:22:29 AM PST by butlerweave
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To: nickcarraway

How many deep six articles posted here?

All over. I saw CNBC hyping it yesterday or day before.

Short sell crap.

Coordinated psyop propaganda.


4 posted on 01/27/2025 11:24:27 AM PST by ifinnegan (Democrats kill babies and harvest their organs to sell)
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To: nickcarraway

What is the main concern ? That it is in violation of US export laws ?


5 posted on 01/27/2025 11:33:07 AM PST by erlayman (E )
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To: nickcarraway
I think that many do not really understand what AI is all about. Anything is possible but I suspect that the new Chinese DeepSeek is more hype than anything else.
6 posted on 01/27/2025 11:34:43 AM PST by rdcbn1 (TV )
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To: rdcbn1
Anything is possible but I suspect that the new Chinese DeepSeek is more hype than anything else.

All my AI stocks are down. Buying opportunity. Especially after it's shown that the Chinese stuff is hype.

7 posted on 01/27/2025 11:38:27 AM PST by roadcat ( )
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To: rdcbn1

It may very well be. China is not transparent about most things. But the risks, if true, are great.


8 posted on 01/27/2025 11:44:25 AM PST by nickcarraway
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To: roadcat

Time will tell. Open source and running on a light infrastructure is huge if true. Hope it is true, opens up a lot of possibilities


9 posted on 01/27/2025 11:51:23 AM PST by teevolt
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To: roadcat

Nasdaq is only off 3.7%. I take that as a plus


10 posted on 01/27/2025 11:55:46 AM PST by Oystir ( )
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To: nickcarraway

Well I do agree that AI is mankind racing to its own end.


11 posted on 01/27/2025 11:59:54 AM PST by Revel
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To: roadcat

Yep, buy this dip.


12 posted on 01/27/2025 12:01:44 PM PST by CapandBall
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To: ifinnegan

Nvidia and Broadcom are down about 17%. It might be a time to buy, buy, buy.


13 posted on 01/27/2025 12:03:43 PM PST by thegagline (Sic semper tyrannis! Trump & Vance, 2024! (Formerly) Goldwater & Thomas Sowell)
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To: teevolt

run it locally on your phone


14 posted on 01/27/2025 12:04:00 PM PST by bobcat62
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To: thegagline

Yeah.


15 posted on 01/27/2025 12:09:08 PM PST by ifinnegan (Democrats kill babies and harvest their organs to sell)
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To: nickcarraway

“had limited resources, and they had to find creative solutions” to squeeze performance out of their models.

That’s the conundrum facing every engineering in every discipline. I never had all the resources I needed to get the job done. Engineering is all about optimization with constrained resources.


16 posted on 01/27/2025 12:11:11 PM PST by ProtectOurFreedom (They were the FA-est of times, they were the FO-est of times.)
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To: rdcbn1

OpenAI always seems to find a way to keep one generation in front but it can’t claim to be that ahead anymore from others (if they ever were). Although I can’t speak from personal experience since I only use Google (only ones not panicking):)


17 posted on 01/27/2025 12:41:24 PM PST by erlayman (E )
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To: bobcat62
run it locally on your phone

Be careful. The phone app is just a front end which sends your prompts to their server (in China?).

You can run DeepSeek locally since it's open-source, but you'll have to put it on actual computer hardware. (I haven't checked the specs required, but from what I've read, it sounds like you might need a high-end consumer machine.) I have no idea if there are any back doors there if you run it locally, but you can bet that China didn't release it for altruistic reasons.

18 posted on 01/27/2025 12:44:32 PM PST by Alvin Diogenes
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To: Alvin Diogenes

I have one of the simpler Deepseek models running locally on my Mac.


19 posted on 01/27/2025 12:53:48 PM PST by bobcat62
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To: nickcarraway

I don’t believe they were limited at all. They easily got around Biden’s export ban and got all the NVDA H100s they needed.


20 posted on 01/27/2025 12:56:19 PM PST by montag813
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