This is on the media's midweek podcast, and I'm Brooke Gladstone.

So lately the stock market's been rocking and rolling, but this week the AI industry especially

has felt the ground shake with the intrusion of a new kid on their block.

A Chinese model called Deepseek, founded by a Chinese billionaire in 2023,

which has broken through with technology that is comparable to the American behemoths.

I'm talking about open AI, Google DeepMind, Anthropic, Meta's Lama AI and Elon Musk's X-AI.

But ever so much cheaper to make and mind-bogglingly accessible

to all.

Ed Zitrin, host of the Better Offline Podcast and writer of the newsletter, Where's Your Ed at,

has been warning that the AI bubble has been primed to burst for some time now. Ed, thanks for joining us.

My pleasure. So on Monday, the stocks of many major tech firms took a steep dive, including

Alphabet, Microsoft, the AI chipmaker Navidia, which I guess lost almost $600 billion in value,

reportedly the biggest one-day loss in

U.S. history, though it's recovered a little. It all happened when news broke about a new,

relatively open Chinese AI model called Deep Seek R. It was kind of like a horror movie

jump scare for the AI industry. Why? So it's important to know

how little the AI bubble has been built on. If you look at these companies, Anthropic,

OpenAI, and then the competitive ones from Amazon, Google, with Gemini, for example,

there's not actually been much behind them. It's always

been this idea that America has built these big, beautiful, large language models that require

all of this money, based on their narrative. Tons of GPUs, the most expensive GPUs, the biggest

data centers, because the only way to do this was to just cram more training data into

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