DeepSeek AI & the "Less is More" Paradigm

You know how everyone's saying AI is all bigger is better? More data, more money, more power. Right, just scale everything up. But this week, a company called DeepSeek really shook things up. Like the financial markets actually took notice. Yeah, it was amazing to see how fast they reassessed everything. The whole landscape shifted overnight, right? Yeah. The value of those AI giants, well, it's not looking so giant anymore. All because this relatively unknown Chinese company, DeepSeek, did something incredible. Built an AI that's being compared to like GPT-4? And they did it for a fraction of the cost. Seriously, a tiny fraction. I mean, think about it, you've got OpenAI, right? Been around for over a decade. Thousands of employees. Billions in funding. And you have DeepSeek, what, two years old? Barely, yeah. Team of like 200. Less than $10 million in capital. It's wild. And they basically put out a product that's equal, maybe even better than what OpenAI has. Makes you wonder if the giants missed something. Like, maybe bigger isn't always the answer. That's the big question, isn't it? Are the small guys outsmarting the big guys? Or is it something deeper? Like a philosophy of how to approach AI? Totally. So DeepSeek's model, called DeepSeek V3, it uses this cool thing called a mixture of experts architecture. MOE, yeah. So instead of one giant network doing everything, they have a team of specialists. AI experts. It's like a bunch of different AI's. That's exactly. Like if you have a heart problem. You go to a cardiologist, not like a dermatologist. Right. Yeah. You want the right expert for the job. So, DeepSeek V3 has all these experts, 671 billion parameters, I think. But get this, only a small group of them actually do the work. Really? Yeah. Like 37 billion activated for a specific task. So, it's super efficient. It's like having a library. Yeah. Right. But you only open the books you actually need. Yeah. Saves a lot of time. And energy. This is huge for sustainability. Makes sense. All those giant models must use a ton of power.