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China's DeepSeek AI dethrones ChatGPT on App Store: Here's what you should know [cnbc.com]:

Some American tech CEOs are clambering to respond before clients switch to potentially cheaper offerings from DeepSeek, with Meta reportedly starting four DeepSeek-related "war rooms [theinformation.com]" within its generative AI department.

Microsoft [cnbc.com] CEO Satya Nadella wrote [x.com] on X that the DeepSeek phenomenon was just an example of the Jevons paradox, writing, "As AI gets more efficient and accessible, we will see its use skyrocket, turning it into a commodity we just can't get enough of." OpenAI CEO Sam Altman tweeted a quote he attributed to Napoleon, writing, "A revolution can be neither made nor stopped. The only thing that can be done is for one of several of its children to give it a direction by dint of victories."

Yann LeCun, Meta's chief AI scientist, wrote [linkedin.com] on LinkedIn that DeepSeek's success is indicative of changing tides in the AI sector to favor open-source technology.

LeCun wrote that DeepSeek has profited from some of Meta's own technology, i.e., its Llama models, and that the startup "came up with new ideas and built them on top of other people's work. Because their work is published and open source, everyone can profit from it. That is the power of open research and open source."

Alexandr Wang, CEO of Scale AI, told CNBC [cnbc.com] last week that DeepSeek's last AI model was "earth-shattering" and that its R1 release is even more powerful.

"What we've found is that DeepSeek ... is the top performing, or roughly on par with the best American models," Wang said, adding that the AI race between the U.S. and China is an "AI war." Wang's company provides training data to key AI players including OpenAI, Google [cnbc.com] and Meta [cnbc.com].

Earlier this week, President Donald Trump [cnbc.com] announced a joint venture [cnbc.com] with OpenAI [cnbc.com], Oracle [cnbc.com] and SoftBank [cnbc.com] to invest billions of dollars in U.S. AI infrastructure. The project, Stargate, was unveiled at the White House by Trump, SoftBank CEO Masayoshi Son, Oracle co-founder Larry Ellison and OpenAI CEO Sam Altman. Key initial technology partners will include Microsoft [cnbc.com], Nvidia [cnbc.com] and Oracle, as well as semiconductor company Arm [cnbc.com]. They said they would invest $100 billion to start and up to $500 billion over the next four years.

nvidia-is-4-games dept

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