Welcome to the TechMeme Right Home for Tuesday, January 28th, 2025. I'm Brian McCullough.

Today, more fallout from the deep seek realignment of everybody's thinking about AI.

Could this be a signal that the large model, business model, is over and value is going to be in the application layer?

Pebble lives. Spotify says it pays out tons, but does it really, and the network of

AI Local News News Letters. Here's what you miss today in the world of tech.

Well, it's day two of the deep seek era, and as tends to happen with these things, there's a bit of a snapback.

First up, folks are like, we welcome our new AI paradigm. Sam Altman said Deep Seeks R1 is, well, quoting him,

Deep Seeks R1 is an impressive model, particularly around what they're able to deliver for the price.

We will obviously deliver much better models, and also it's legit invigorating to have a new

competitor. We will pull up some releases. But mostly we are excited to continue to execute on our

research roadmap and believe more compute is more important now than ever before to succeed

at our mission. The world is going to want to use

a lot of AI and really be quite amazed by the next-gen models coming, end quote. Meanwhile,

deep seek is an excellent AI advancement and a perfect example of test time scaling, an

invidia spokesperson told CNBC on Monday.

DeepSeek's work illustrates how new models can be created using that technique,

leveraging widely available models and compute.

That is fully export control compliant.

Infference requires significant numbers of Nvidia GPUs and high-performance

networking, the spokesperson added.

Well, they would want to say something hopeful like that.

NVIDIA's stock dropped 16.86% yesterday losing nearly $600 billion in market cap.

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