Vanilla XJO Thread, page-61

Good evening, all, and happy Australia Day weekend.

As I type this, overseas indices are in panic mode. To the surprise of some of the 'smartest' people on the planet ⠀ , we may not need to spend 1 trillion in CapEx to have great AI LLMs.

To no surprise to anyone with half a brain, the Chinese have created an LLM, DeepSeek, at 1/50 of the cost and beat out the Silicon Valley competitors on many tasks, and it's FREE. I have been using it for the past 5 days and am very impressed. Who could have guessed that 1.4 billion people - many of whom are very intelligent - would come up with something incredible when they've had everything done to them to slow their progress? As they say, necessity is the mother of invention!

Anyway, expect the AI race between the US and China to be hot, hot, hot for the foreseeable future.