Trump’s AI Tango: A Tale of Theft and Turmoil

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It was a day like any other in the wild west of artificial intelligence, where the lines between progress and piracy are as blurred as a dusty horizon. But then, the narrative shifted like a desert sandstorm, and the White House’s AI czar, David Sacks, cried foul, accusing China’s DeepSeek AI of intellectual property theft 🤑.

Seems that DeepSeek’s R1 model had “distilled” knowledge from OpenAI’s models, a process that’s like sipping whiskey from someone else’s flask without permission 🥃. Sacks claimed there was “substantial evidence” to back up this claim, but he didn’t reveal the source of this evidence, leaving us to wonder if it was just a hunch or a hard fact 🤔.

This all went down a day after President Trump gave DeepSeek a thumbs up, calling it a “positive” development and a “wake-up call” for Silicon Valley. But the markets didn’t get the memo, and tech stocks took a nosedive, wiping out over $1 trillion from the Nasdaq Composite Index 📉. NVIDIA suffered the worst single-day loss in U.S. history, plunging by $600 billion, while Alphabet and Microsoft also took major hits 🤯.

But what’s the real story here? Did DeepSeek really steal the recipe for OpenAI’s secret sauce, or was it just a clever imitation? 🤔

DeepSeek’s Dirty Little Secret

According to Sacks, DeepSeek used responses from OpenAI’s models to train its own, which is like using someone else’s homework to get a good grade 📝. But OpenAI’s terms of service explicitly prohibit using its outputs to train competing models, so it looks like DeepSeek might have been playing with fire 🔥.

OpenAI’s CEO, Sam Altman, even acknowledged that DeepSeek’s R1 model was “invigorating” and praised its ability to deliver strong results on a budget 💸. But it seems that DeepSeek’s success came at a cost, and not just the $5.6 million it took to develop the model 💸.

deepseek’s r1 is an impressive model, particularly around what they’re able to deliver for the price.

we will obviously deliver much better models and also it’s legit invigorating to have a new competitor! we will pull up some releases.

— Sam Altman (@sama) January 28, 2025

Crypto Market Mayhem

The crypto market didn’t take the news well, with Bitcoin briefly dipping below $100,000 and total liquidations soaring by more than 850% on Jan. 27 📉. But some crypto enthusiasts see DeepSeek’s success as a bullish sign, especially for AI projects, due to its potential to lower the costs of running AI-powered blockchain applications 🚀.

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2025-01-29 12:24