Understanding The DeepSeek Moment and What's Next for AI

all right so we just had the Deep seek moment um another AI story penetrated the mainstream and I really want to talk about this from the perspective of somebody who spends his entire day his entire week life following not just these tools but this entire space I feel like there's a so much misinformation out there frankly so many people put a spin on their story that is tinted by their particular perspective and by their interests I want to talk from the perspective of a consumer and a power user of these applications from somebody who's looking

at this technology to improve his life not from the perspective of somebody looking at all the futuristic scenarios not from the perspective of a stock analyst not from the perspective of somebody interested in a particular National interest I want to look at it neutrally as somebody who well now has access to yet another model that is extremely powerful and how this fits in with the existing landscape um within AI and I want to do it in a manner that is how to put it maybe a bit more approachable to people who don't follow this week

by week because if you're you know a power user or if you really like vigorously follow this topic you will know that deep seek did not come out today on Monday where the stock market is going crazy Nvidia is down what is it 15% 177% earlier today um now deep seek is on rank one like we were talking about this on the channel last week already no I want to talk about this from a perspective of somebody who just heard about this and is using chat gpn is wondering hey should I use this instead or

what should I tell my parents um what does this mean for the world what does this mean for the AI category that's what we're going to do here today and we're going to wrap up with a little theory of mine on where the ball is going next okay so this just happened a deep seek moment um I don't think people even called that I'm calling it that just happened and the question is Now Now what's coming next because obviously this is a big deal so let's start by summarizing briefly very briefly okay and very concisely

what just happened okay so basically Chinese company came out with a model called Deep seek R1 um they came out with it last week it took a few days for you to climb to the rank one in all app stores across the world I know today morning in Europe this was still on like rank five now in the evening it's already on rank one us it was already on rank one yesterday and basically um it caused this like cataclysm in the stock market especially Nvidia stock prices got cul I'm not going to go into all

that but but basically the whole Theory there and the whole idea is that this model that was released as opposed to everything you might know already um the chat GPT from open Ai and all the models there and Gemini from Google gole and from from Deep Mind and anthropics Claw and metas Lama and all the other Tech Giants with their AI models well this one is built a little different because it trumps it it cannot just compete with the best of them it's better than some of the be best okay it's on the level of

open eyes 01 which was considered state-of-the-art as of today now it's you know just a deep seek competitor and then they have 01 Pro we'll we'll talk about this in the end we'll get to this we'll do a quick comparison between deep seek and their pro model um hint hint Pro is actually still a little better but it doesn't matter cuz the difference is like minimal the point is deep seek is out now and the big difference here is this okay this right here is gated behind the $20 month pay wall this one here is

gated behind the $200 a month pay wall they announced this as this like gift from God that you can now gain access to under the cat GPD Pro Plan they showed us their next all free models we're going to briefly go over like how that relates and and the history of cat gbt here but basically this was presented as this this big deal that you uh you know now can gain access to and it is like these are legitimately the best models we've ever had but China enters the room and they release the same thing

but for free okay so you can basically go in here and use this web interface you can download the mobile application and use their models for free and they're equally as smart as 0 over here okay not as 01 Pro maybe a bit better but um basically as smart as the smartest model out there okay 01 had no competition there's ji thinking whatever Let's ignore that for now 01 was just basically the best model out there and now the Chinese released a open- source alternative that they host and provide to you for free basically saying

a big Fu to all the big uh to all the big Tech to all the the the seven big tech companies in the US okay so that's what just happened now what does that mean practical and what do you need to know about this because people spin this in so many ways okay well the first big thing I want to talk about is this is a Chinese company do not give them your data do not use it okay let's address this is that true yes one 100% but there's a massive butt okay so first I

want to like back up the claim that people make and say that yes this is 100% true if you use this web interface or if you use this application okay you are agreeing to the privacy policy and which says this is the Deep seek privacy policy updated on December 5th 2024 welcome to deep seek under user input you will read when you use our services we may collect your text or audio input prompt uploaded files feedback chat history or other content that you provide to our models and services we may take everything that you ever

give us okay and then there's a second part here further down where is it stored well the personal information we collect from you may be stored on a server located outside of the country where you live we store the information we collect in and look no worries we store it in SEC secure servers located in the People's Republic of China okay so that's pretty clear okay they couldn't be more clear their privacy policy tells everything that you put into this thing when you interact with it will take it and we'll use it to our advantage

okay no they're not not playing charade here or anything but and here is the big butt this really matters this is an opensource product and not some limited open source no this is fully open sourced you can download deep seek onto your machine today through something like oama or LM Studio these are apps that make it easy to run it and even on a M2 MacBook let's say you can run the smaller versions of deep seek locally none of this applies when you do that this is very important okay this only applies if you're using

their application where they host it themselves on their own machines and they provide it to you okay so if you host this locally if you run this locally if you download it from here um which you know takes a little few extra steps and takes you know local computer computing power none of this applies because you're not sending the data over to China they're not running the service you running it on your own machine so this is the problem for the tech companies this is what caused this partially um because they created a model for

a few million dollars where all the companies up until now were claiming well you shouldn't even play in this Arena this is just way too high effort it costs tens if not hundreds of millions of dollars to compete at our level and heck we're actually so far ahead of you that there's not even a point in competing that's what has been communicated okay and then this Chinese company pulls up spends $5 million to train up something that competes with the very best model the the world has ever seen 01 matter of fact open AI teased

all3 um in like mid December and now a few days after this deep seek announcement guess what they had to announce that hey even the free users will be getting access to all free mini Because deep seek forced their hand they did not expect this right like they came out with that like you can always watch the open AI releases and kind of infer what the competition has been doing it's funny like that because they just you know out of nowhere they announced like oh by the way all free mini is going to be available

to all our free users no need for a $200 plan no need for a $20 plan hey we'll give you that model for free because we're so generous no it's because deep seek came out and everybody can use the Chinese application and simply give them their data give them the interactions um and yeah so they had to compete that was not all there's one more part to the story they released uh open eye operat in a spontaneous live stream a spontaneous live stream coming out of nowhere last Thursday um like they that did not come

out of nowhere they needed something for their investors to to argue that hey they're still ahead right like deep seek might be out it might be competing with their best model that a month ago was like this world changing thing that nobody can catch up with well at this point it's freely available in web app it's the number one app on the App Store everybody can use it and um you can download it locally and use it by yourself and you don't have to pay a sent to open AI to any other company they did

not expect this okay so that's why they had to release operator which is basically a remote agent that can control your computer and this is this is what I want to talk about at the end of this video but the main takeaway to me is this like yes these apps are fantastic you're basically getting what you would be paying for with open a for free and if you want you can run it locally and get around all these privacy concerns which are very legitimate and you should take them seriously you know like don't put your

you know private information in here basically don't put like rule of fum don't put anything into these models that you would not be openly sharing on social media I think that is if you do that you'll be safe um but then on the other hand like you got to you got to make up your own mind on the privacy policy but I just really wanted to point this out because this gets you know misconstructed in so many ways and this is just freely available like again you could literally build a billion dollar company on top

of this model you could build it into any application and they have no rights to it whatsoever because this comes under an MIT license fully open source license okay so this is what happened here right now now let's focus on what will happen moving forward and where this leaves you as a consumer okay cuz I feel like that really matters so I'm just going to pull up this little chart here which is the cost to interact with again we're talking about the state-of-the-art AI model here we're not talking about like another competitor that is catching

up we're literally talking about 01 was King now deep seek came out and you know shares the FR so to say but they don't charge money it's open source it's out there some people are even saying hey this is you know the true open a um so like it's just the Chinese open Ai and they decided to just put it out there so let's look at this price difference what does this mean for developers what does this mean for individuals that want to use this programmatically and you know use the Deep seek API that runs

on on you know Chinese Hardware well 01 would have cost $7.5 per 1 million tokens of input deep seek costs 14 cents okay 14 cents versus $7.5 what that is night and day right then the same thing for for output the difference is even bigger deep seek charging $219 for a million tokens of output that's when you basically get you know messages back from it when it's spitting out messages deep seek um is running at$ $2 open AI running at $60 so that's a that's a 30X there 30 times more you're going to pay with

the open AI services so they just scorched the Earth on this space that's what really happened now here's the main point of this video what does this mean for you as the consumer what does this mean for me as also a consumer well this is fantastic we have more competition we have a new platform that basically came out provided what was gated behind the big pay wall for free um and now it forced the US players to release some of their best stuff also for free right they cannot charge $200 for their o free model

if the competition is giving it out for free right um so that's one big takeaway what's the other big takeaway well I kind of want to quickly Point towards the quality of this thing and the the transparency of this thing because I think that's sort of a big deal so I ran the same prompt and by the way this came up in our community today as a way to test these models it's a poem um with the letters without the letters a e i o u and then like we're basically asking it to recheck itself

and if you don't know these thinking models look this took 2 minutes to generate a result this one 01 took 30 seconds and 01 Pro took four minutes okay I ran the same prompt for all three of these you can just kind of look at this I'm not going to spend a lot of time analyzing this we spent a lot of time on this channel actually already looking at um the comparison between 01 and 01 Pro and the competitor models 01 Pro always comes out on top okay either it's it's equally as good or it's

slightly better so I stand behind the fact that even between these three poems um this one kind of is the best for me personally but you can make up your own mind obviously this is just one test case and there's many more I'll generally say this I mean because we've been like teaching this and talking about this for months heck matter of fact we have a public challenge running in the public area of our community that is freely accessible to everybody which is about like what unique use case can you find for 01 um and

these thinking models and basically Dirk here shared a very very interesting one that I sure just briefly wanted to highlight which is hey you can run your own lab of different AI agents that will write a research paper for you all of it is powered by Deep seek um and here he provides all the files that you can download to run this locally and you can have your own agent laborat these are these are Advanced use cases though so like people in the community and people that are really into this stuff have been on top

of this uh for a while I mean he submitted this two days ago before all the hype went off but yeah it's basically like using um using things like like deep seek and and uh 01 Pro uh here you have the setup for 01 Pro uh for deeps R1 here's the setup for 01 Pro and you can just do this yourself and run a little AG laboratory on your own machine but basically what I'm trying to say is that like power users have been putting this to work for months we've been talking about 01 Pro

structure on the Weekly News show we do here on the channel for a while now okay uh we've been talking about all of this but this is the moment where it hit the main stream because it happened for free okay and that's why I call this the Deep seek moment as the chat GPT moment because like gpt3 was available before that but it was really the moment where they put it out for free and a user friendly manner like this application one might say you know or this web interface that's everything changed and I thought

it was really important to make this video because these privacy policies and the fact that this thing is actually open source and it crashes the prices in this type of way like I feel like these are the things that matter to Consumers um also the difference in quality that's what matters okay and this thing is the highest quality model we've had so far and I'm getting to my final Point here as you might recognize and my final point is like what actually matters here and what is what is next where is the ball going next

because as I just showed you the quality of deep seek is very high and it gets these things right uh one more point I want to want to make is like it's not just that they open sourced it it also like the thinking process of this model right here is actually revealed you see all the thoughts it's it sounds a bit like a human thinking look at that it goes through all the thoughts in great detail you want to see what this looks like on open eyes model um you know as many people are saying

like for good reason that that it's more like you know closed AI they're making that joke which is like fair enough because like if you open up 0 one's thinking uh open eyes then this is all you get it's the same prompt but all you get is five paragraphs if you open up the pro On's Pro thinking 1 two 3 four five six paragraphs right whereas deep seek gives you all the faults so they they never even revealed all the details on how it FS because I don't know maybe they were scared that somebody would

copy their secret formula to this maybe they didn't want to provide so much context and overwhelm users that's also an argument to be made um but I personally really like this seeing how it thinks as because then I can prompt um to make alterations in this thinking process that's more advanced stuff though so here's my final Point okay this came out this happened you have access to this you can use this um if you if you're if you care about your data like you're going to run this privately for something like ola or LM Studio

there's tutorials free tutorials on this channel on that um and a lot of them on the Internet just look up LM Studio or o Lama you can easily install the 7B version of this thing locally but I don't even think that's the biggest news of the week everybody's going crazy for this because something that you know all of us like AI Tech nerds have been using and utilizing for months now became freely available and that's amazing I I love that I wanted to make this video to inform you on what that means for the consumer

but I think the thing that really matters is this okay it's it's the new operator product and open a released this might have released this as a reaction to What deep seek has done to their Flagship product the best thinking model but this thing this thing is serious let me tell you so like I created a separate video on this like like this one uncut no edits by the way if you notice I'm I'm one shot recording this because I just want to have a talk with you you know human to human and this thing

it actually works and it actually gets work done I tested every single model on the market every you know open interpreter clawed computer use there was a bunch of these agent GPT baby AI there was a bunch of these agentic AIS that claim to be autonomous and claim to get things done none of them worked close to as well as open eyes operator does so everybody might be distracted by this deep seek thing what I spent my weekend doing and what I spent my day doing is running use cases through this and and kind of

redirecting my entire team of people to run everything they do through this and see how far we can push this thing and my conclusion is that it's better than people think I know it gets mixed reviews because some of the usage here is not intuitive but let me tell you I'm beyond the point of booking a table reservation it's basically like it's an agent that remote controls a computer with the power of AI it's not using something as powerful as 01 or deep seek it's just using GPT 40 that is trained on you know using

a mouse and keyboard but this thing it actually works I'll give you one example and we'll end on that so like people are like whoa okay operator um doesn't seem so good like who cares about making a table reservation that's no big deal I can do that myself in in about 2 minutes why would I need a $200 product okay that's a ridiculous price tag right now but it is what it is why would I need a $200 product to do that for me if I can do it myself fair enough you don't need openai

operator to make your table reservation but we started pushing this thing and it can do things like well it can research five different websites for you find them autonomously it can pull all the summaries of the websites into a separate Google doc for you then it can take those summaries and create a PowerPoint presentation from them and it can do all of this in a one-hot prompt without asking for your assistance a single time in the process you just have to know how to craft the prompt for it you have to go for the process

once there's a bunch of Tricks I'm not going to go into the details but like I'm making a separate video for the Channel showing you some of that how it works but this thing works I have a preset for my um favorite supermarket in and here in Lisbon where I live um uh I'm logged into Uber Eats I have all the items my favorite items that I want to order once a week and I have this preset where I just press one button and I set it up so it ignores all the questions in between

and like literally I press one button and within I don't know 40 minutes uh somebody's ringing at the door bringing me bags with my favorite groceries and these are not things that I could not do by myself this and this is the final Point that's why I'm saying this is where it's going this is a way of multiplying yourself it's not about saving time and this is important this came up in the community today I want to end on this look this operator thing it's not about this right here okay it's not about saving time

you would spend doing something it's about adding extra hours to your day this is cloning technology for the common man like you're able to do these tasks like wouldn't it be great if like in the topic of of your interest um that you may be working in your career you could go out and every day you could you would spend an hour looking at 10 articles summarizing them and then looking for that that would be great but you're not doing that because it takes too much efforts too much willpower too much time for you to

do that it's probably not worth it but it would be good to have that operator is the first research preview of this new product category it can do that for you at the click of a button um and there's many many other examples of that I'm creating content on it already and I think this is where the ball is going next it's it's not about and again it's not about saving time it's about adding extra hours to your day and then you know like what happens if one person um you know is working eight hours

a day and the other person is working 30 well it's it's pretty clear the other person is going to pull ahead and that's where I see the ball going next I think people who really learn how to utilize this and follow the development on this of this and learn how to work with it are going to have an advantage um that is like very real and it's not an advantage of having $20 more by Saving on deep seek it's an advantage of adding more hours to your day and that's why I think this product category

within AI um is the next big thing and operator is the first version of it that I have seen that I've tried that actually is able to get some work done um and while it might not be worth $200 and while it might not be at a stage where it's a complete Game Changer it's been 4 days and I wouldn't want to give this up anymore that's all I say so yeah go educate your loved ones on deep seek tell them about the privacy policy maybe send them this video and I hope this helped and

yeah I'll see you soon all right