Why DeepSeek R1 is blow to America
On January 20, 2025, Trump announced Operation Stargate. Five hundred billion dollars was to be invested over a few years to build a gigantic data center aimed at developing artificial general intelligence. It was promised that such an AI would cure cancer and bring abundance. As a percentage of the USA’s GDP, the investment was equivalent to the Manhattan Project that built the nuclear bomb. Curiously, the data center was proposed to be owned by OpenAI and its investors—Microsoft, Oracle, and Softbank. These private companies were to invest money and recoup their investments by selling model inference services to individuals and companies. These companies draw confidence from the performance of the OpenAI O model series. In September 2024, OpenAI launched the O1 model, which can solve PhD-level problems in mathematics, reasoning, and coding. The O1 model was a massive improvement over the then state-of-the-art models. According to benchmarks, it performed better than a PhD holder in m...