Why is everybody talking about DeepSeek now? And how it can destroy Nvidia?

🤑 Training top AI models today is prohibitively expensive. Companies like OpenAI and Anthropic spend over $100M on compute alone, relying on massive data centers with thousands of $40K GPUs.

DeepSeek flipped the script, managing to train AI models on par with GPT-4 and Claude for just $5M.

How?

🤖 By rethinking AI from the ground up. Traditional AI operates with excessive precision, using 32 decimal places for every calculation. DeepSeek simplified this to 8, reducing memory requirements by 75%.

The real game-changer? DeepSeek's "expert system." Instead of activating all 1.8 trillion parameters like traditional models, they call on only the 37 billion parameters needed for a task.

📉 This method decreases costs and hardware requirements dramatically:
- Training cost: $100M → $5M
- GPUs needed: 100,000 → 2,000
- API costs: 95% cheaper

💪 This enables smaller teams to compete in AI without billion-dollar data centers. It also poses a significant threat to Nvidia, whose business model depends on selling high-margin, expensive GPUs.