American capitalists are worried. And they should be. America’s dominance as the superpower of Ai, is no longer unchallenged. And whereas vast sums of capital were harnessed to create that dominance, China’s DeepSeek, which by the way, I now use, was created for a mere $5 million dollars.
If China can produce the efficiency and capability of applications like DeepSeek, and seriously undermine American corporations and their dominance in AI so easily, then I suspect, the future is anything but guaranteed in relation to America’s dominance.
DeepSeek, using older technology, has been completely able to create DeepSeek without having to circumvent America’s restrictions on technology transfer, thought to be necessary to sustain AI. And according to Mike Cieslak,
“It highlights a new way of thinking about the economics of the AI industry…it levels the playing field for governments and companies with aspirations to become AI power players.”
According to Cieslak, on BBC, “It’s debut has had a huge impact, wiping $1 Trillion off the value of US tech stocks. He suggests that US AI valuations were highly inflated, and while the AI bubble hasn’t quite burst, that its structural integrity is now under strain.
The new economic reality, due to DeepSeek, is that monetizing AI in the US, and for the outside world, will be much more difficult.
It’s a situation that can be celebrated by those who saw the looming costs of AI and its use being beyond their means.
May the 1%, who only have their self-interest at heart, – may their odds forever, not be in their favour.
Particularly so, when they are ruled by kleptocrats and sociopaths.
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