Speaker 1: Think this deep-seek AI is gonna have more ramifications on the economy than you think Why did the Dow Jones and the Nasdaq crash? First thing on a Monday morning Why did they drop a whopping 300 and 800 points respectively sending investors into a tailspin? Why was it Trump's immigration raids harming the agricultural sector was it Trump's tariff threats? Over the weekend not quite for once it doesn't seem like Trump or his temper tantrums are involved but His buddies certainly are for years Trump's billionaire tech bro BFFs have thought that they were kings of the world They assume that their research into artificial intelligence was light years ahead of everybody's everyone else's Their technology would revolutionize human society and make them wealthy beyond comprehension wealthy behind beyond anybody's wildest imagination well We now know that Sam Altman Mark Zuckerberg and company. They are Maybe not as smart as they thought they were maybe not you see Monday morning stock market crash was a result of the world finding out that they may actually be Pretty bad at their jobs

Speaker 2: It was a technological leap that shocked Silicon Valley a newly unveiled free open source AI model that beat some of the most Powerful ones on the market, but it wasn't a new launch from open AI or model announcement from Anthropic this one was built in the east by a Chinese research lab called deep seek and the details behind its development stunned top AI Researchers here in the US first the cost the AI lab reportedly spent just 5.6 million dollars to build deep seek version 3 Compare that to open AI. We're just spending 5 billion a year and Google which expects capital expenditures in 2024 to sort Over 50 billion dollars and then there's Microsoft that shelled out more than 13 billion dollars just to invest in open AI But even more stunning how deep seek scrap your model was able to outperform the lavishly funded American ones to see the deep seek

Speaker 3: New model, it's super impressive in terms of both how they have really effectively done an open source model that does what? Is this inference time compute and it's super compute efficient

Speaker 2: It beat met as llama open a eyes GPT 4o and in tropics clod sonnet 3.5 on accuracy on wide-ranging tests a subset of 500 math problems and AI math Evaluation coding competitions and a test of spotting and fixing bugs in code

Speaker 1: Yes, deep seek shocked the world the tiny Chinese startup Fewer than 200 employees appears to have eaten Google and meta and open a eyes lunch Not only does their artificial intelligence seem much smarter than any American version They produced it forget this it's a fraction of the cost to reiterate deep seek made Theirs with five point six million dollars open AI will spend five billion dollars on their tech this year alone Now listen to my friend Andrew Ross Sorkin over at CNBC. He breaks it down breaks down. What could be the earth-shattering? Implications of all of this watch this today this week

Speaker 4: Last week I think is going to be historic in terms of a major shift and upending of the entire paradigm around artificial Intelligence the big tech companies the big chip companies and everything else around it including energy You know for a very long time last two years We've talked about these scaling laws this idea that for AI to get better and better you need Faster and faster chips. They need to be putting tens and hundreds of billions of dollars of investment in place They need enormous amounts of energy to support all of that all of a sudden literally in a week We've now seen deep seek this Chinese large language model emerge Where it appears it's all being done at a fraction of the energy at a fraction of the the chip usage And so if that is true It really changes the dynamic about all of these investments We just saw last week Sam Altman standing at Sam Altman open AI Standing next to President Trump talking about how they're going to invest You know a hundred billion five hundred billion dollars in chips And the question is do you need all of that if in fact this small group tiny group of 200 people? Figured out how to do this. Could we be looking at another dot-com bubble?

Speaker 1: Could this American AI bubble burst and in the process? Could it tank our entire economy could we be looking at a possible recession here economists are Beginning to ponder all of those questions So we have put so much investment into these big tech companies haven't we they're valued at trillions of dollars not millions not billions trillions of dollars What happens if a tiny Chinese startup sends all the value up in smoke? I'm telling you my friends. It seems that Trump's tech bros Could have really screwed the pooch on this one Too early to say for certain but look at the stock market folks are scared This is exactly why you cannot allow such a small number of people and companies To amass so much wealth so much power consolidation, right humans are flawed. They make mistakes They make poor decisions if you make a bad bet with $100, well, okay You're gonna have to skip going out to dinner this weekend Maybe or something like that if you make a bad bet with 100 billion dollars. Well, you may Have just cost a whole lot of people their entire livelihoods Now there is some reporting that suggests that we shouldn't engage in doomsday talk and thinking just yet. Take a listen. Here it is

Speaker 5: Chinese labs, they have more h100s than then

Speaker 4: People think you know the and these are the highest powered Nvidia chips that they were not supposed to have

Speaker 5: Yes, my understanding is that is that deep-seek has about 50,000 h100s Which they can't talk about obviously because it is against the export controls that the United States has put in place And I think it is true that you know I think they have more chips than other people expect but also going to go forward basis They are going to be limited by the chip controls and the export controls that we have in place

Speaker 1: I know that all sounds confusing but bear with me here, okay? What that gentleman was explaining is that deep-seek may not actually be as impressive as the Chinese are suggesting, okay? He is saying that China somehow got access to a ton of extremely advanced chips to power deep-seek chips Deep-seek chips I should say that the u.s. Has banned from China I don't know if it makes a difference though. They're still doing it. So maybe the app isn't as miraculous after all Maybe it runs on extremely expensive American technology, but the company can't say that again. Does it matter? Maybe it's smoke and mirrors, but they're still doing it What do you think is this AI chaos overblown or do we potentially have something very worrying on our hands here? let me know what you think in the comments and Tell me what you think the future of artificial intelligence is If you can answer that, I don't know perhaps you'll become a billionaire yourself Thanks everyone for watching your support means the world to us So make sure you hit the like button and you subscribe to our channel to make sure that you never ever miss a video We're live every day 10 a.m. Eastern Time. We drop even more content at 2 p.m. Eastern and 5 p.m Eastern and if you want more Don Lemon show content We'd love for you to become a member of the lemon community where you will receive access to special community posts You'll get exclusive content and members-only live shows So head over to our channel page or click the join button on this video again Thank you for watching. We appreciate your love and your support and we will see you next time