As big tech is getting hammered in today's sell-off, CNBC's Magnificent Seven Index dropping more than 1%.

Well, there's a new emerging threat to mega-caps massive spending in America's dominance in the AI race.

Dear Jabosa digs into that for today's tech check.

Hey, Dee.

Hey, good morning, Leslie.

So here is a name that our audience may want to write down, DeepSeek. This is a new free open source AI model that beats the latest open AI and meta models on key benchmarks, and it was made for a fraction of a fraction of the cost. Now, it was trained by a Chinese research lab that used Nvidia H-800s. That's a lower performance version of the H-100 chips that are cheaper, more available, and tailored

for restricted markets like China.

Now, I've been testing it out this morning, and on the surface, it looks and acts just like

OpenAI's chat GPT.

And in fact, it actually thinks it is chat GPT.

When I asked, what model are you,

it answered, I'm an AI language model created by OpenAI, specifically based on the GPT for

architecture, suggesting that it was trained on chat GPT outputs, which, leaving aside terms of

service violations, it means that entirely new state-of-the-art models can be built on what is already out there.

In other words, OpenAI's moat may be shrinking.

If a model like Deep Sea can emerge with competitive performance, minimal cost, and reliance on existing outputs,

it signals a rapidly shrinking barrier to entry in AI development, challenging the

current dominance of industry leaders like OpenAI, based on technical tests designed to measure

its coding performance, deep seek outperformed other models, including Meta's Lama 3.1 and OpenAI's

GPT4. Oh, and by the way, those are the latest state-of-the-art models. And that led Andresge Kaparthi, a founding team member at OpenAI's GPT-4-O. And by the way, those are the latest state-of-the-art models.

And that led Andres Gaparthi, a founding team member at Open AI, to post DeepSeek making

it look easy today with an Open Frontier-grade LLM trained on a joke of a budget.

...