DeepSeek R1 has generated significant attention for its cost-effective AI capabilities, reportedly developed by teenagers for only $16.95. Despite the hype, training costs for DeepSeek are estimated to be much higher than the $5.6 million often cited, with discussions of potential investments in high-end chips amounting to about $500 million. Claims suggest model distillation was employed, potentially leveraging knowledge from OpenAI’s models, raising concerns about originality. Notably, DeepSeek’s censorship of sensitive topics, like Tiananmen Square, has sparked memes and controversy. Running DeepSeek locally requires $6,000 in equipment, and a version replicating its technology has been produced for just $30. This situation echoes Jevons Paradox, suggesting that as AI technology becomes more efficient, usage will increase dramatically. Industry experts weigh in on the implications of these advancements for investment and creativity in fields like Hollywood filmmaking. Overall, DeepSeek functions as a case study of how emergent AI technologies are reshaping expectations and investment models in tech.

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