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Hi everyone. Here is Ricardo Vargas for a very special podcast. A few days ago, the world of AI and the world of tech was taken by surprise with a new application developed by a tiny, a really tiny startup in China called DeepSeek. And this app, of course, as I speak here, new apps on AI are being released.
We are talking about thousands of applications pretty much every day.
So why this application is a game changer, why this application is in the cover of Financial Times today, is on the cover of Bloomberg News today, and why this is a potential game changer.
Let me explain to you.
DeepSeek is like a ChatGPT. It's an application that you can download, you can use it online and you can download it on your iPhone, on your Android. And by the way, it's number one on both stores globally, surpassing ChatGPT and all the others.
Second, it's excellent. The recent benchmarks are absolutely astonishing.
Some of the tasks the DeepSeek surpassed, that I would say I'm not talking about o3 here, but the O1 is one of the most advanced models of OpenAI.
And so far you will say to me, Ricardo, okay, this is happening every day. What's the difference? There is a difference that is shaking everybody.
They spent $5.7 million to train these 676 billion token models.
Let me give you a perspective. Effective $5.6 million to train a large language model. It's the price of a candy. Maybe even less than that if compared with what? OpenAI with what? Microsoft with what? Meta? Are doing.
It's just unbelievable. While OpenAI is spending 100 million, 200 million, $300 million to train, 5 million is nothing. And the model is so complex, as competent as O1.
And why this is a game changer. Just to give you an idea. Nvidia in the early market, the stock price dropped by 15% just today, as I speak here from Madrid in Spain, the world lost $1.2 trillion in market value on tech stocks.
Why? Because if this model and this algorithm to train large language models is really true and effective, as DeepSeek said, this is probably the biggest game-changer we have ever seen since the release of ChatGPT, because what will it mean to all of us?
It will mean that, smaller companies, companies with less infrastructure can develop models. It's not anymore restricted. If I was recording this podcast maybe four months ago, I would say that in this world of large language model is dominated by four, five, six players.
But now, if this becomes true, anyone, anyone. If you are a mid-sized company, you can develop large language models and these could dramatically challenge the dominance. And this can make projects like the Stargate that was announced by the US government in a few days with 500 billion USD?
This will become absolutely the biggest and the largest waste of money in the planet because people will not need people will not need Nvidia chips and the amount there is no radical consumption of energy.
And in a model that will be available to surprise everyone. This model of DeepSeek is open source. It means you can download the code and you can tailor.
And this is why everybody, if you go today on the cover of Financial Times on the cover of Bloomberg News, this is the only thing everybody is talking about. This is why stocks of Microsoft, of Nvidia, are dropping so sharply.
Because imagine if this becomes true, how Microsoft will justify spending $80 billion building data centers. If this new model does not require this amount of data centers.
So did you see how volatile is this and why I'm recording this podcast. Because most of you are project managers.
This is a game changer for us because what happens this type of technology if this I'm always saying if this becomes true because it's everything very new.
If this becomes true, you in your PMO can develop large language models for a fraction, a true fraction of the investments. And this will not be, I would say, an exclusive feature of ultra-large corporations.
So these will democratize the access to AI in an unprecedented way. And this can foster the development of AI is already incredibly fast.
To an astonishing speed, to an astonishing speed.
And it's important. Look, I'm not sponsored by DeepSeek. Okay? I'm just surprised at how volatile this AI world is. So be mindful. Take a look.
If I were you, I would download this, take a look and pay really attention. Not just on the quality.
Honestly, if you use both ChatGPT or DeepSeek, it will be pretty much the same.
What will be absolutely disruptive if they really spend only $5.7 million to train that?
Oh, God. Then I'm speechless.
Then what we will see in the future is tenfold of the speed. Ten times the speed of what I was thinking before.
Think about that and see you next week with another Five Minutes Podcast.
