DeepSeek’s $6M Miracle
A surprisingly efficient AI model developed part-time by a Chinese team (yes, they also run a hedge fund!). Trained on just $6 million, it punches far above its weight, rivaling giants like OpenAI and Meta’s Llama (which cost billions). But here’s the twist: Jevons’ Paradox means this efficiency could backfire…
Why DeepSeek Matters:
- Built on a shoestring budget, it democratizes AI for startups and tech companies which don't have insane R&D budget.
- Proof that innovation ≠ infinite $$$.
Jevons’ Law 101: In 1865, economist William Jevons found that efficiency gains (like better coal engines) didn’t lower resource use—demand exploded instead. Applied to AI:
- Cheaper tools → More use → Higher compute needs.
- Example: If DeepSeek cuts AI costs 10x, startups won’t deploy 10% fewer models—they’ll deploy 100x more.
Talking product sense with Ridhi
9 min AI interview5 questions
You have to be too naive to believe that DeepSeek is their side project. It's in the DNA of the chinese to show off their achievements as effortlessly as possible. Although I'm not denying that they have achieved something great here.
🤓🤓
It’s a miracle indeed