The DeepSeek Situation Is Insane...

all right so you knew this video is coming ladies and gentlemen it's late it's dark right now and ladies and gentlemen deep seek is one of the wildest surprises uh this week for anybody that doesn't know artificial intelligence is pretty much here to stay and uh there's a lot of companies out there that are basically running to the top to create one day the artificial intelligence of our dreams AGI whatever the name is tons of companies are chasing this trend now in the last couple days a company by the name of de seek actually ended up making the news everywhere uh it ended up basically turning the world upside on its head uh by releasing a free competitor to one of the largest actual like competitors in the space uh open AI you know the guys that make chat GPT there's actually a lot to cover over here so I'm going to kind of start from the beginning now open AI has a bunch of models one of the models they have is open ai1 which is a model that's designed to spend more time thinking before they respond and of course it's one where again the AI will think guide through its steps it's designed to not only provide you better answers better you know better answers to your questions but logically work through problems uh in a much more intensive way and of course it's not the only thing they do if you followed anything AI related that I've covered throughout this uh you know time period I've looked at things like Sora I've looked at various models of chat GPT image generation so on and so forth now today the reason I'm talking about deep seek primarily is that not only have the Chinese released this crazy artificial intelligence competition but if you're reading at the top it's not only live it's actually open source meaning that you can run it on your device locally with 100% privacy uh independent of Chinese spying or American spying or really anything which is something obviously I'm going to show you in this video okay I think it's important for me to teach you guys how to run AI locally now I don't think AI is going anywhere but I do want to make sure the stuff is super duper safe and I always recommend that if you can self host something like this you should do it generally speaking anytime you interact with chat GPT uh deep seek or really any AI on the internet through web interfaces you are giving up a whole chunk of your information any image you send over could be used for training information stored uh for whatever reason so I'm going to show you how to run all of these things locally on your device so nobody can grab your information and generally when you're interacting ING with the stuff if you've got the capable Hardware you don't have to send your information to any random place but let's go even deeper into this now a couple days ago CH open aai decided to announce something known as the Stargate project now the Stargate project is a new company which intends to invest $500 billion over the next four years building new AI infrastructure for open AI all the way throughout the United States so they're going to be deploying a 100 billion right now the infrastructure will will create leadership in AI create hundreds of thousands of American jobs and generate massive economic benefit for the entire world so yeah that's a lot of money to be throwing right and at the end of it they also announced that the big partners for them are going to be arm Microsoft Nvidia Oracle and open AI these are key initial technology Partners so with $500 billion you might be wondering how much do the Chinese spend on something like deep seek so according to the Chinese it cost somewhere around $5. 6 million which would be far less than apparently 100 million to1 billion one of the executives estimated to build a similar model last year so again ladies and gentlemen it's kind of wild that this is the actual case because if we're spending billions of dollars on one end and the Chinese are somehow able to spend literally a tiny fraction of that it kind of makes people wonder so obviously beyond their statements nobody really knows what the real cost for it could be the reality of it is this could be a very very large loss leader just to Simply test how Americans may choose to use artificial intelligence that belongs to another country and of course it could also be a situation where nobody is really going to know these deep costs and this could be bankrolled by again larger hch funds larger parts of the Chinese government that could be used to ultimately become this loss leader that people will use you know even if they distribute this which from what I understand is basically free at the moment it it literally could just be something where you chunk it where you throw in a bunch of money just to drown out or scare your actual competition in the private space so if you go to deep seeks website over here you'll see that they actually have been showing their capabilities and in a lot of cases they appear to actually beat out their competition not in every actual way there's certain cases where obviously Sonic Claude chat GPT do actually end up beating out even like meta's llama but deep seeks a pretty good competitor in this field so far and of course to start it now you can go to their website and just simply give your phone number password uh well actually the phone number I believe has to be a Chinese number but for a country China that bans Google they surely do allow you to use your American or foreign Google account to serve as a login method which I thought was actually pretty hilarious now because of how popular deep seek has gotten it's like number one in the App Store super duper popular and it's been disrupting the market so much that apparently they have been attacked with a massive Cyber attack going on right now according to deep seek literally due to a large scale malicious attack on deep seek Services where temporary limiting registrations to ensure continued service existing users can log in as usual thank you for your understanding and support and obviously with all of the advancements that they've kind of done if you look very carefully at what they've done to the actual Market it becomes pretty apparent why they're getting attacked like if you look at the Nvidia stock literally as I was making this video they're just doing fine they're doing absolutely okay boom they drop like a rock in the last 5 days you're looking at a 14. 8% drop and to give you an idea apparently according to the actual analysts over here you're looking at a $600 billion shedding for NVIDIA just imagine waking up day that day with your Nvidia bags and you're like oh no what happened why am I losing money OB viously some crazy bullish investor on Wall Street bet is just rubbing his hands going it's time to buy that dip now why is envidia suffering the hardest well if you want to know how training these AI models come out to one of the biggest tech companies the people that create the hardware Nvidia in this case create these massive gpus and these clusters that these companies buy for exorbitant prices to serve as training hardware for multiple AI so it could be open AI it could be Gro or in this case it could actually be deep seek because they've also used Nvidia technology but they've said they just spent 5.

6 million on Nvidia stuff and how they apparently did that was because so right here the h800 GPU so they're not using like the newest uh or the most expensive gpus they basically said that they can create something super duper uh efficient that requires again a fraction of that compute power and the reason again why Nvidia is falling is that usually they're able to flood the market with like tons of these chips so now the market is realizing whoa maybe we're putting way too much you know price maybe we're putting way too much stock on how much each of these chips are needed if you can get this deep this deep seek stuff done with a fraction of the compute power and all the hardware maybe the market should kind of correct itself cooking boy here writes h800 as a fraction of the computing power as the h100 let alone the new b200 and retails for cheaper with less profit to Nvidia if Cutting Edge models can be trained on much less compute then there is less demand for the highest profit margin most expensive gpus from Nvidia at least that's what the market fears and I think that's the most asent way to kind of put this now since you can't access deep seek uh you know V3 right now because of a Cyber attack if you have the hardware meaning you have some serious like actual we're talking tens upon tens of thousands if not more dollars worth of Hardware you can go to hugging face and actually download the most like their actual model right now so so for instance 325,000 downloads this of a week ago this is a 685 billion parameter model so you can just download again deep seek V3 and try to effectively run it on your actual hardware and some people from what I've understand actually have tried but we're not going to do that so to run deep seek it's pretty simple first thing you need if you have and I'm going to make this guide for people that are using Windows which is the majority of my community but of course if you have Linux or Mac OS you can also aeve achieve the same thing so inside here if you want to run it or if you want to run even things like Llama Or fi download a program known as AMA and just get it installed under your operating system after this go to a site chatbox A. A where you can download a chatbot aai that will interface with your olama server locally installed to your device so once you've installed AMA all you can do is open up your uh start menu go to the terminal and inside your terminal you want to type in olama Run Deep seek R1 32b now there's other versions 32b is just something that I'm running on my system but there are multiple different types there's deep seek uh R1 colon 1.