This is a full-blown, scorched-earth free-for-all that has already racked up a number of casualties though you wouldn\u2019t know it from reading the headlines which typically ignore recent \u2018cataclysmic\u2019 developments. But when\u00a0President Trump announced the launching of a $500 billion AI infrastructure project (Stargate) on Tuesday<\/a>\u00a0just hours after China had released its\u00a0DeepSeek R1\u2014which \u201coutperforms its rivals in advanced coding, math, and general knowledge capabilities\u201d<\/strong>\u2014it became painfully obvious that the battle for the future \u2018is on\u2019 in a big way. And this is not a battle that either side can afford to lose. Here\u2019s how technology expert Adam Button summed it up:<\/p>\n Imagine we\u2019re back in 2017 and the iPhone X was just released. It was selling $999 and Apple was crushing sales and building a wide moat around its ecosystem.<\/strong><\/em><\/p>\n Now imagine, just days later, another company introduced a phone and platform that was equal in every way if not better and the price was just $30.<\/strong><\/em><\/p>\n That\u2019s what unfolded in the AI space today. China\u2019s DeepSeek released an opensource model that works on par with OpenAI\u2019s latest models but costs a tiny fraction to operate.<\/strong>\u00a0Moreover, you can even download it and run it free (or the cost of your electricity) for yourself.<\/em><\/p>\n The product is a huge leap in terms of scaling and efficiency and may upend expectations of how much power and compute will be needed to manage the AI revolution.\u00a0It also comes just hours before Trump is expected to unveil a $100 billion investment in US datacenters.\u00a0<\/strong>The model shows there are different ways to train foundational AI models that offer up the same results with much less cost. It also opens up far more applications for AI that would have been too expensive to run previously, which should broaden the applications in the real economy.\u00a0<\/em><\/p>\n – China\u2019s DeepSeek may have just upended the economics of AI,<\/a>\u00a0forex live<\/em><\/p><\/blockquote>\n Imagine the panic that is spreading across western tech capitals right now.\u00a0<\/strong>AI was supposed to be the fast-track to absolute societal control and oligarchic rule into the next millennia, but now those pesky Chinese have overturned the applecart leaving western elites with a problem they might not be able to fix. (See\u2014Unchecked AI will lead us to a police state<\/a>, edri ) They expected that their microchip sanctions would sabotage China\u2019s AI efforts for at least a decade-or-so but, instead, China has come roaring back with a system that has left the tech giants gasping for air.<\/p>\n![\"\"](\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/Gh2Q5uWWMAAE2CD-DeepSeekMW-1-600.jpg?itok=jKVjlF3q\")
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