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I wasn't under the impression American AI was profitable either. I thought it was held up by VC funding and over valued stock. I may be wrong though. Haven't done a deep dive on it.
Okay, I literally didn't even post the comment yet and did the most shallow of dives. Open AI is not profitable. https://www.cnbc.com/2024/09/27/openai-sees-5-billion-loss-this-year-on-3point7-billion-in-revenue.html
The CEO said on twitter that even their $200/month pro plan was losing money on every customer: https://techcrunch.com/2025/01/05/openai-is-losing-money-on-its-pricey-chatgpt-pro-plan-ceo-sam-altman-says/
I don't see how they would become profitable any time soon if their costs are that high. Maybe if they adapt the innovations of deepseek to their own model.
Why is everyone making this about a U.S. vs. China thing and not an LLMs suck and we should not be in favor of them anywhere thing?
We just don't follow the dogma "AI bad".
I use LLM regularly as a coding aid. And it works fine. Yesterday I had to put a math formula on code. My math knowledge is somehow rusty. So I just pasted the formula on the LLM, asked for an explanation and an example on how to put it in code. It worked perfectly, it was just right. I understood the formula and could proceed with the code.
The whole process took seconds. If I had to go down the rabbit hole of searching until I figured out the math formula by myself it could have maybe a couple of hours.
It's just a tool. Properly used it's useful.
And don't try to bit me with the AI bad for environment. Because I stopped traveling abroad by plane more than a decade ago to reduce my carbon emissions. If regular people want to reduce their carbon footprint the first step is giving up vacations on far away places. I have run LLMs locally and the energy consumption is similar to gaming, so there's not a case to be made there, imho.
"ai bad" is obviously stupid.
Current LLM bad is very true. The method used to create is immoral, and are arguably illegal. In fact, some of the ai companies push to make what they did clearly illegal. How convenient...
And I hope you understand that using the LLM locally consuming the same amount as gaming is completely missing the point, right? The training and the required on-going training is what makes it so wasteful. That is like saying eating bananas in the winter in Sweden is not generating that much CO2 because the distance to the supermarket is not that far.
I don't believe in Intelectual Property. I'm actually very against it.
But if you believe in it for some reason there are models exclusively trained with open data. Spanish government recently released a model called ALIA, it was 100% done with open data, none of the data used for it was proprietary.
Training energy consumption is not a problem because it's made so sparsely. It's like complaining about animation movies because rendering takes months using a lot of power. It's an irrational argument. I don't buy it.
Well LLMs don't necessarily always suck, but they do suck compared to how much key parties are trying to shove then down our throats. If this pops the bubble by making it too cheap to be worth grifting over, then maybe a lot of the worst players and investors back off and no one cares if you use an LLM or not and they settle in to be used only to the extent people actually want to. We also move past people claiming the are way better than they are, or that they are always just on the cusp of something bigger, if the grifters lose motivation.
I don't understand why everyone's freaking out about this.
Saying you can train an AI for "only" 8 million. It is a bit like saying that it's cheaper to have a bunch of university professors do something than to teach a student how to do it. Yeah and that is true, as long as you forget about the expense of training the professors in the first place.
It's a distilled model, so where are you getting the original data from if not for the other LLMs?
They implied it wasn't something that could be caught up to in order to get funding, now ppl that believed that finally get that they were bsing, thats what they are freaking out over, ppl caught up for way cheaper prices on a moden anyone can run open source
If you can make a fast, low power, cheap hardware AI, you can make terrifying tiny drone weapons that autonomously and networklessly seek out specific people by facial recognition or generally target groups of people based on appearance or presence of a token, like a flag on a shoulder patch, and kill them.
Unshackling AI from the data centre is incredibly powerful and dangerous.
The other LLMs also stole their data, so it's just a last laugh kinda thing
So this guy is just going to pretend that all of these AI startups in thee US offering tokens at a fraction of what they should be in order to break-even (let alone make a profit) are not doing the exact same thing?
Every prompt everyone makes is subsidized by investors’ money. These companies do not make sense, they are speculative and everyone is hoping to get their own respective unicorn and cash out before the bill comes due.
My company grabbed 7200 tokens (min of footage) on Opus for like $400. Even if 90% of what it turns out for us is useless it’s still a steal. There is no way they are making money on this. It’s not sustainable. Either they need to lower the cost to generate their slop (which deep think could help guide!) or they need to charge 10x what they do. They’re doing the user acquisition strategy of social media and it’s absurd.
Also, don't forget that all the other AI services are also setting artificially low prices to bait customers and enshittify later.
It's models are literally open source.
People have this fear of trusting the Chinese government, and I get it, but that doesn't make all of china bad. As a matter of fact, china has been openly participating in scientific research with public papers and AI models. They might have helped ChatGPT get to where it's at.
Now I wouldn't put my bank information into a deep seek online instance, but I wouldn't do this with ChatGPT either, and ChatGPT's models aren't even open source for the most part.
I have more reasons to trust deep seek as opposed to chatgpt.
It's just free, not open source. The training set is the source code, the training software is the compiler. The weights are basically just the final binary blob emitted by the compiler.
Yeah. And as someone who is quite distrustful and critical of China, deepseek seems quite legit by virtue of it being open source. Hard to have nefarious motives when you can literally just download the whole model yourself
I got a distilled uncensored version running locally on my machine, and it seems to be doing alright
The model being open source has zero to do with privacy of the website/app itself.
Where is an uncensored version? Can you ask it about politics?
Also what's more American than taking a loss to under cut competition and then hiking when everyone else goes out of business
It is capitalism when American parasite does this, mate.
Now apologize!
It's capitalism when China does it, too. Regardless of China actually doing it with this ai thing or not.
China outwardly is a deeply capitalist country.
Interesting that all the propaganda and subversiveness is coming from the US, not China. Having the opposite of the desired effect.
US corporate sector throwing a tantrum when it gets beat at it's own game.
"The free market auto-regulates itself" motherfuckers when the free market auto-regulates itself
The thing about unhinged conspiratards is this, even if their unhinged conspiracy is true and you take everything as a matter of fact, the thing they're railing against is actually better. Like on this case. Deepseek, from what we can tell, is better. Even if they spent $500Bil and are undercutting the competition that's capitalism baby! I think ai is a farce and those resources should be put to better use.
free market capitalist when a new competitor enters the market who happens to be foreign: noooooo this is economic warfare!!!!!
We literally are at the stage where when someone says: “this is a psyop” then that is the psyop. When someone says: “these drag queens are groomers” they are the groomers. When someone says: “the establishment wants to keep you stupid and poor” they are the establishment who want to keep you stupid and poor.
Names in chinese AI papers: Chinese.
Names in memerican AI papers: Chinese.
"Our chinese vs their chinese"
I'm all for dunking on china but american AI was unprofitable long before china entered the game.
*was never profitable.
At least with Costco loss-leaders you get a hot dog and a drink.
I am personally of the opinion that IKEA sells furniture as a loss leader, and their real business is Swedish meatballs.
to make american ai unprofitable
Lol! If somebody manage to divide the costs by 40 again, it may even become economically viable.
nO. STahP! yOUre doING ThE CApiLIsM wrONg! NOw I dONt liKE tHe FrEe MaKrET :(
In other words: "Stop scaring away the dumb money!"
what's that hissing sound, like a bunch of air is going out of something?
ChatGPT's $200 plan is unprofitable! Talk about the pot calling the kettle black!