The AI startup has upended the industry by developing a model that costs much less to produce \u2013 and is available free to a universe of tinkerers<\/p>\n
Nothing cheers up a tech columnist more than the sight of $600bn being wiped off the market cap of an overvalued tech giant in a single day<\/a>. And yet last Monday that\u2019s what happened to Nvidia, the leading maker of electronic picks and shovels for the AI gold rush. It was the biggest one-day slump for any company in history, and it was not alone \u2013 shares of companies in semiconductor, power and infrastructure industries exposed to AI collectively shed more than $1tn in value on the same day.<\/p>\n The proximate cause of this chaos was the news that a Chinese tech startup of whom few had hitherto heard had released DeepSeek R1, a powerful AI assistant that was much cheaper to train and operate than the dominant models of the US tech giants \u2013 and yet was comparable in competence<\/a> to OpenAI\u2019s o1 \u201creasoning\u201d model. Just to illustrate the difference: R1 was said to have cost only $5.58m to build, which is small change compared with the billions that OpenAI and co have spent on their models; and R1 is about 15 times more efficient (in terms of resource use) than anything comparable made by Meta.<\/p>\n Continue reading…<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The AI startup has upended the industry by developing a model that costs much less to produce \u2013 and is available free to a universe of tinkerers Nothing cheers up a tech columnist more than the sight of $600bn being wiped off the market cap of an overvalued tech giant in a single day. And … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-32113","post","type-post","status-publish","format-standard","hentry","category-blog"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/posts\/32113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/comments?post=32113"}],"version-history":[{"count":0,"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/posts\/32113\/revisions"}],"wp:attachment":[{"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/media?parent=32113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/categories?post=32113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news2shorts.com\/index.php\/wp-json\/wp\/v2\/tags?post=32113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}