China’s New AI Model DeepSeek Just Won the Tech Race...American CEOs in Shock!

Cyrus Janssen
26 Jan 202515:44

TLDRChina has unveiled DeepSeek R1, an advanced AI tool for deep data analysis, on the same day Donald Trump was inaugurated as the 47th US president. This move sends a strong signal to the US government, showing China's ability to thrive despite previous sanctions. DeepSeek R1 was developed in just two months with a budget of $6 million, using less advanced GPUs, making it a competitive alternative to OpenAI's models. This development challenges the dominance of industry leaders like OpenAI, Google, and Meta, and has Silicon Valley CEOs concerned. The timing of the release also highlights the ongoing geopolitical tensions and the potential for further trade conflicts between the US and China.

Takeaways

  • πŸ‡¨πŸ‡³ China unveiled DeepSeek R1, an advanced AI tool, on the same day Donald Trump was inaugurated, signaling defiance against US tech sanctions.
  • πŸ’° DeepSeek R1 was developed in just 2 months for under $6 million, contrasting with the billions spent by US companies like Google and OpenAI.
  • 🌐 China's new AI tool is open-source, allowing global access and challenging the dominance of US tech giants.
  • πŸ“ˆ China's AI development has accelerated despite US efforts to contain it, with companies like Alibaba and Tencent closing the AI gap.
  • 🚫 US sanctions on AI chips have backfired, pushing China to innovate and develop competitive technologies independently.
  • 🌐 China's global manufacturing dominance has grown, with its share of global industrial production rising to 27% and projected to reach 45% by 2030.
  • 🌍 US trade policies are isolating it from the global community, as many countries are increasingly relying on Chinese companies.
  • πŸ’‘ China's ability to innovate has been underestimated, with breakthroughs like DeepSeek R1 proving its capability in tech and AI.
  • πŸŽ“ DeepSeek R1 has become the model of choice for top US university researchers, highlighting its quality and cost-effectiveness.
  • 🀝 The future of US-China relations in tech and trade is uncertain with Trump's return, but collaboration could be mutually beneficial.
  • πŸ’° Nevada Canyon Gold, a junior gold mining company in Nevada, has seen a significant rebound with Trump's return, presenting an investment opportunity.

Q & A

  • What is the significance of the timing of China's release of DeepSeek R1?

    -China released DeepSeek R1 on the same day Donald Trump was sworn in as the 47th president of the United States. This timing was likely intended to send a strong signal to the new US administration that China has not only survived previous sanctions but has thrived, developing competitive AI technology.

  • How does DeepSeek R1 compare to American AI models in terms of cost and performance?

    -DeepSeek R1 was developed in just two months with a budget of less than $6 million, which is significantly lower than the billions of dollars spent by companies like Google and OpenAI. Despite the lower cost, DeepSeek R1 performs just as well as its American counterparts, making it a highly competitive model.

  • What is the potential impact of DeepSeek R1 on the global AI industry?

    -The release of DeepSeek R1 could disrupt the current dominance of industry leaders like OpenAI, Google, and Meta. By making the software open source, China is allowing anyone to view, modify, distribute, and use it, which could lead to a rapid increase in AI development and a shrinking barrier to entry in the industry.

  • How has the US government's policy on AI chips affected global relations?

    -The US government's policy of restricting AI chip access to non-Western countries has upset many of its close allies and trading partners. This policy contradicts the US's long-standing advocacy for free trade and may lead to a decoupling not only from China but also from the rest of the world.

  • What were the goals of Donald Trump's trade war with China, and how successful were they?

    -The goals of Donald Trump's trade war with China were to reduce the US trade deficit with China and limit China's global position in manufacturing. However, seven years later, China's trade surplus has reached a new record, and its share of global industrial production has increased, indicating that the trade war has failed to achieve its objectives.

  • How has the US's restriction on microchips impacted China's tech industry?

    -The US's restriction on microchips has forced Chinese tech companies to redirect resources back into domestic development, leading to increased profitability, capability, and scope for research and development. This has accelerated China's progress in important industries, including the development of DeepSeek R1.

  • What is the current status of China's global position in manufacturing?

    -According to data from the United Nations, China today accounts for around 27% of global industrial production, up from 24% in 2018. By 2030, the UN predicts China's share of industry will have risen to 45%.

  • What is the significance of DeepSeek R1 being open source?

    -Making DeepSeek R1 open source allows anyone to view, modify, distribute, and use the software. This could lead to a rapid increase in AI development and a shrinking barrier to entry in the industry, challenging the current dominance of industry leaders.

  • How has the US government's policy on AI chips affected the global AI industry?

    -The US government's policy of restricting AI chip access to non-Western countries has upset many of its close allies and trading partners. This policy has also led to a rapid increase in AI development in China, as Chinese companies have been forced to develop their own technology.

  • What is the potential impact of DeepSeek R1 on the future of US-China relations?

    -The release of DeepSeek R1 could lead to increased tensions between the US and China, as it challenges the US's dominance in the AI industry. However, it could also lead to increased cooperation, as the US may need to work with China to influence the future of AI.

Outlines

00:00

πŸ˜€ China's AI Breakthrough and US-China Relations

On January 20th, the same day Donald Trump was inaugurated as the 47th US President, China unveiled DeepSeek R1, an advanced AI tool for deep data analysis, positioning itself as a rival to America's OpenAI. This development is significant as it took Google and OpenAI years and billions of dollars to build similar AI models, whereas China achieved this in just two months with a budget of $6 million. The timing of this release sends a strong signal to the US government, indicating that China has not only survived but thrived despite the previous administration's sanctions. China's new AI software performs comparably to its American counterpart but at a fraction of the cost and with less technology. This open-source tool challenges the dominance of industry leaders like OpenAI, Google, and Meta. The US government's tech sanctions against China aimed to contain its rise, but China's rapid progress in AI development shows its resilience and innovation. This development has significant implications for the future of tech around the world and the evolving US-China relations.

05:00

πŸ˜€ China's Global Manufacturing Dominance and AI Progress

Despite the US government's efforts to contain China through trade restrictions, China's global manufacturing dominance continues to grow. China's trade surplus has reached a new record of nearly $1 trillion since the trade war began in 2018, and its share of global industrial production is projected to rise to 45% by 2030. The US's attempts to decouple from Chinese companies have led to a globalization frenzy among Chinese companies, accelerating their progress in various industries, including semiconductors and AI. The development of DeepSeek R1, an open-source AI tool, demonstrates China's ability to innovate and develop competitive technology at a significantly lower cost. This breakthrough has raised concerns among Silicon Valley executives and highlights the potential for China to overtake the US in tech and innovation. The return of Donald Trump to the White House adds uncertainty to the future of geopolitics and world trade, with potential implications for the AI industry and US-China relations.

10:01

πŸ˜€ The Impact of Trump's Presidency on the Tech Industry and Gold Mining

The return of Donald Trump to the White House has significant implications for the tech industry and global trade. The development of DeepSeek R1 has changed the tech industry overnight, challenging the dominance of US tech companies. With Trump's focus on deregulation and a pro-business approach, industries like gold mining could experience a bull market. Nevada Canyon Gold, a junior gold mining company operating in Nevada, has seen a significant rebound in its stock value since Trump's return. The company's innovative business model, focusing on royalties and streaming, positions it well to benefit from Trump's policies. The potential for gold stocks to rise, given their historical discounts compared to previous bull cycles, presents an opportunity for investors. The future of US-China relations and the tech industry remains uncertain, but the return of Trump to the White House could lead to further developments and challenges in these areas.

15:02

πŸ˜€ Investing Opportunities and the Future of Gold Mining

The return of Donald Trump to the White House has historically led to significant gains in the gold mining sector. A junior gold mining ETF saw an 181% appreciation during Trump's previous term, compared to an 88% decline during Obama's administration and a 33% fall during Biden's term. Nevada Canyon Gold, a company operating in Nevada, has experienced a 98% rebound in its stock value since Trump's return. The company's innovative approach to gold mining, focusing on royalties and streaming, avoids the high capital costs of traditional mining operations. With Trump's deregulation policies, gold mining companies could become more competitive. The potential for gold stocks to rise, given their historical discounts compared to previous bull cycles, presents a significant opportunity for investors. The future of the gold mining industry and its potential to benefit from Trump's pro-business policies are worth watching closely.

Mindmap

Encouragement for viewers to explore investment opportunities related to geopolitical trends
Importance of US-China cooperation in the AI field for global progress
DeepSeek R1 as a symbol of China's technological catch-up and potential overtaking of the US
Potential benefits from Trump's deregulation and pro-mining policies
Introduction to Nevada Canyon Gold and its innovative business model
Analysis of gold mining sector's performance during different US administrations
Potential for further acceleration of China's tech advancements due to US trade policies
China's increasing global manufacturing dominance and trade surplus despite US sanctions
Eric Schmidt's changing views on China's AI capabilities from 2024 to 2025
Concerns among Silicon Valley CEOs about the future of the AI industry
Challenge to US tech dominance and potential shrinking of market for companies like OpenAI and Google
Signal to the US government and Trump administration of China's technological resilience
Open-source nature allowing global access and modification
Comparison with Google and OpenAI's multi-billion dollar investments over years
Developed in 2 months with a budget of $6 million using dumbed-down GPUs
Immediate rivalry to America's OpenAI with significant cost and time efficiency
Unveiling of DeepSeek R1 on January 20th, coinciding with Trump's inauguration
Conclusion
Investment Opportunities
Historical Context and Future Predictions
Geopolitical and Industry Impact
Technical and Financial Aspects
Introduction
China's New AI Model DeepSeek and Its Implications
Alert

Keywords

πŸ’‘DeepSeek R1

DeepSeek R1 is an advanced AI tool developed by a Chinese research lab for deep data analysis. It is a rival to America's OpenAI and was developed in just two months with a budget of less than $6 million. This tool is significant because it demonstrates China's ability to create competitive AI technology at a fraction of the cost and time compared to American counterparts, challenging the dominance of industry leaders like OpenAI and Google.

πŸ’‘AI large language models

AI large language models are complex AI systems designed to understand and generate human-like text. They require significant computational resources and investment to develop. In the video, the development of DeepSeek R1 is compared to the efforts of Google and OpenAI, which took years and billions of dollars to build similar models, highlighting the rapid progress and efficiency of Chinese AI development.

πŸ’‘Open Source

Open source refers to software or technology that is freely available for anyone to view, modify, distribute, and use. DeepSeek R1 being open source is a key point in the video, as it allows for widespread adoption and innovation, potentially disrupting the market and challenging the proprietary models of companies like OpenAI. This move signifies a shift towards more accessible and collaborative AI development.

πŸ’‘Tech Sanctions

Tech sanctions are restrictions imposed by one country on another to limit the development or access to certain technologies. The video mentions that the US government passed unprecedented tech sanctions against China, hoping to contain its rise in the tech industry. However, China's release of DeepSeek R1 on the day of Donald Trump's inauguration sends a message that China has not only survived but thrived despite these sanctions.

πŸ’‘AI Development

AI development involves creating algorithms and systems that can perform tasks that typically require human intelligence, such as understanding natural language, recognizing patterns, and making decisions. The video emphasizes China's rapid progress in AI development, showcasing DeepSeek R1 as a prime example of how China is catching up and potentially overtaking the US in this field.

πŸ’‘Global Hegemony

Global hegemony refers to the dominance of one country over others in terms of political, economic, and military power. The video criticizes the US government's actions as an attempt to maintain its global hegemony by restricting the development of AI technology in non-Western countries. This strategy is seen as counterproductive, as it may lead to a backlash and further accelerate China's technological advancements.

πŸ’‘Trade War

A trade war is an economic conflict between countries where they impose tariffs or other trade restrictions on each other's goods and services. The video discusses the trade war initiated by Donald Trump in 2018, which aimed to reduce the US trade deficit with China and limit China's global manufacturing position. However, the trade war has failed to achieve these goals, and instead, has led to China's increased dominance in global manufacturing and accelerated its progress in various industries, including AI.

πŸ’‘Going Global

Going Global refers to the strategy of expanding a company's operations and market presence beyond its home country. The video highlights how US tariffs have spurred Chinese companies to implement Going Global plans more rapidly, leading to the aggressive expansion of Chinese brands overseas while foreign brands in China have decreased.

πŸ’‘Royalties and Streaming

Royalties and streaming are financial arrangements in the mining industry where a company secures the rights to a portion of the production from a mine in exchange for upfront payments or ongoing royalties. The video mentions Nevada Canyon Gold's innovative use of royalties and streaming as part of its business model, which avoids the high capital costs of traditional mining operations and focuses on securing production rights with lower overhead.

πŸ’‘Gold Mining

Gold mining is the process of extracting gold from the earth. The video discusses the potential for gold mining companies to benefit from Donald Trump's deregulation policies, which could lower costs and expedite project approvals. Nevada Canyon Gold is highlighted as a company with a unique business model in the gold mining sector, focusing on royalties and streaming to unlock the untapped potential of Nevada's legendary mining districts.

Highlights

China unveiled DeepSeek R1, a competitive AI model to OpenAI, on the day Trump was sworn in.

DeepSeek R1 was developed in just 2 months with a budget of $6 million, significantly less than OpenAI's billions.

China's AI development challenges US tech dominance and signals a rapidly shrinking barrier to entry in AI.

Former Google CEO Eric Schmidt's views on China's AI capabilities have shifted dramatically in just 6 months.

US government's tech sanctions against China have failed to contain China's rise in AI and manufacturing.

China's trade surplus has reached a new record, and its global manufacturing position continues to grow.

Chinese companies are aggressively expanding overseas, while foreign brands in China are decreasing.

US efforts to contain China have resulted in China accelerating its progress in important industries like semiconductors and AI.

DeepSeek R1 is an open-source AI tool that has every Silicon Valley tech executive worried about the future.

China's DeepSeek R1 is almost identical in quality to OpenAI but is 30 times cheaper.

Almost half of all top AI researchers globally were born or educated in China.

Nevada Canyon Gold is a junior gold mining ETF that has shown significant performance changes with different US administrations.

Nevada Canyon Gold's business model focuses on royalties and streaming, avoiding high capital costs of traditional mining.

Gold stocks are historically cheap, presenting a potential massive opportunity as gold prices have increased.

Nevada Canyon Gold is a pure play on Nevada's gold, with a revolutionary approach to royalties, streaming, and exploration.

Nevada Canyon Gold's stock has rebounded significantly with Trump's return to the White House.