Big Tech in panic mode... Did DeepSeek R1 just pop the AI bubble?

last week Chinese company deep seek shocked the world when they walked right over open AI moe by releasing the open source R1 model not only does it beat their $200 01 reasoning model but it also beats Claude Sonet in Gemini it wins on key benchmarks but more importantly it passes My Vibe test along with many others on the internet as long as you don't ask it what happened on April 15th 1989 R1 even wins at math which is crazy considering open AI had the answers in advance over the last few days normies have been learning

about R1 and it went viral to become the number one app America this is a big problem for big Tech because in order for the Griff to keep on grifting artificial intelligence needs to be hard and take thousands of gpus to pull off but deeps R1 cost less than $10 million and was actually the side project of a hedge fund where their only goal is to create long-term social value Wall Street is terrified and Nvidia stock is in for a blood bath today Nvidia has been the primary beneficiary of the AI boom but the whole

bubble just got one-shotted by a brutal reality check in today's video we'll find out how deep seek just changed the course of history it is January 26 7 2025 and you're watching the code report Big Tech is literally shaking right now is Sam ultman coped with a dramatic tweet a revolution can neither be made nor stop the only thing that can be done is for one of several of its children to give it Direction by Dent to victories I'm not sure if that's Napoleon Dynamite or Napoleon boner part but the funny thing is he damn

near got ratioed by someone with an anime profile picture that said it's not that deep Bro just release a better model in addition to try to remain competitive with deep seek open AI is also offering its 01 Mini model to free users but that's not all they also Al released a new thing called operator which gives AI access to a browser and allows it to click on buttons and fill out forms on your behalf which is a game changer because that means you can have chat GPT go attend your court appointed DUI courses or anything

else you might have to do online in the future humans will no longer need websites or uis only apis that can interact with the AIS operator is currently only available to people on the $200 plan and overall it gets pretty mixed reviews that's cool and all but the Chinese are really crushing it right now deep seek is one thing but they also released this thing called hun you on 3D which can generate 3D meshes and textures and that's huge for people like me who have spent years failing to get good at blender but the crazy

thing about deep seek is that it was just a side project that cost very little money to produce even Mark Andre called it one of the most amazing and impressive breakthroughs he's ever seen a profound gift to the world and because of that the stock market is panicking and just wiped out nearly a trillion dollars in value with Nvidia being The Biggest Loser followed by other chip companies like Taiwan semiconductor and broadcom you see nvidia's had basically a monopoly on AI training for the last decade because they have better Linux drivers than AMD and all

the machine learning algorithms are optimized for libraries like Cuda which is proprietary and can only run on Nvidia gpus and they have the infrastructure to connect all these gpus together at scale as AI models get bigger and more popular is so do the profits of Nvidia but someone got deep seek running on a few Apple M2 Ultras and that's the 680 billion parameter top-of-the-line model and that's terrifying if you're a tech investor pouring billions of dollars into AI because if the best state-of-the-art model can operate on relatively cheap consumer hardware and it's free and open

source and developed in China how are we going to make any mother fing money people are calling this the Sputnik moment when Russia launched the first artificial satellite into space in 1957 the United States was shocked at the time and it took over a decade to make a comeback when America made its Pinnacle achievement of filming a man on the moon in Nevada that's a joke of course and even the smartest technology in the world deep seek believes in the moonlandings we had a good run on this AI hype train but now it's time to

move on I'm looking forward to brain chips quantum computers artificial meat printers nanor robots digital resurrection and tens of other Tech that will make the world a better place this has been the code report thanks for watching and I will see you in the next one