Let's Settle This Once & For All...

NOTE

The Transcendence of DeepSeek

I am fully aware that I did not send my Sunday Premium newsletter. As I assume most of you value quality and quantity over schedule, I decided that this week’s events were too important to commit to the usual schedule to the detriment of proper reporting and just barely scratching the surface.

Consequently, I’ve prepared a full review of the entire DeepSeek saga, covering every technical detail and its implications in a complete and extensive executive summary you are receiving in this email. It’s a long read, but I hope it gives you all the answers and helps you understand the real implications, not the wrong ones the market took.

For those who aren’t Premium, this time, you won’t find a paywall. Thus, you will be able to read the entire essay; I don’t think it’s fair to gatekeep this significant event in AI history.

But for those of you who are Premium, I’ve written 15 additional Notion new pieces, all listed here {⭐️ The Transcendence of DeepSeek}, which go the extra mile in every single breakthrough DeepSeek has introduced, uncovering the keys that explain why this release has changed the industry for good.

Including the Notion articles, this is easily more than +12,000 words (about four times the usual length) for those who genuinely want to understand the implications.

Enjoy!

FUTURE

Let’s Settle The DeepSeek Saga Once and for All

You’ve probably seen one too many posts on DeepSeek this past week: “China says GPUs are overspent,” “The West is so wasteful,” and so on. If you’ve read my takes, you already know I believe the market got it all wrong and that DeepSeek’s results will only drive more compute and demand.

Interestingly, there’s already proof, considering the price of H100s has been increasing since the DeepSeek release and how the app already represents 25% of ChatGPT’s daily active users.

So, fearmongering over, let me ask you: Do you want to know what really caused Silicon Valley executives to freak out? If so, here are your answers.

By the end of this essay, you’ll have gained:

Critical intuition as to how AIs learn and how they are trained and served, building the necessary intuition to comprehend DeepSeek’s achievements.

Unmatched clarity into the world of AI engineering that has become a $300+ yearly CAPEX investment. In other words, you will now understand what the headline “Microsoft plans investing $80 billion in AI” actually means.

Of course, an understanding of the key breakthroughs DeepSeek has presented and their impact, including proof that this event is going to force frontier labs to make one of my 2025 predictions true (that this is the year of intelligence efficiency)

And, finally, what all this really means to Western Labs, Hyperscalers, NVIDIA, and, importantly, your wallet.

Let’s dive in.

AI’s Toughest Problem

DeepSeek (DS from now onward) has challenged the very root of the West’s understanding of AI training and inferencing. While AI models are pretty simple on a theoretical…

Enjoyed the introduction? Subscribe or sign in to continue with this edition.