What you need to know about DeepSeek

I’ve been saying it for years: The country that masters AI will dominate the world economically, politically and militarily. Since ChatGPT dropped, the U.S. seemed untouchable. Most of us Americans assumed we were a couple of years ahead of China in terms of AI, but the game has changed — and fast.

The latest version of DeepSeek AI, an open-source model out of China, is so good, it tanked U.S. tech stock prices (Nvidia lost $593 billion in value!), shot to No. 1 in the Apple App Store overnight and now has the entire world wondering, “If this is what China is showing us, what’s next?”

Move over, OpenAI

DeepSeek was founded in May 2023 in Zhejiang, China. Its first models were nothing to write home about; the latest release, DeepSeek-V3, is another story.

It was developed in just 55 days, trained on 671 billion parameters and performs as well as (or better than) Meta’s Llama, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in math, coding and reasoning. Let that sink in. It took China just two months to beat the American giants.

The money is where it gets really interesting. OpenAI spent $5 billion on its model in just one year. Google shelled out $50 billion on AI development in 2024. Microsoft has invested $13 billion into AI partnerships.

What about DeepSeek? They spent $5.6 million. It’s a cheap Chinese knockoff.

How’d they do it? 

China put together a group of young, ambitious, super-smart engineers and researchers who worked under strict limitations. The official story is they couldn’t use Nvidia’s top-tier H100 chips because of U.S. export restrictions. Instead, they worked with less powerful H800 chips.

Rumors suggest China started with over 10,000 super-powered H100 Nvidia AI chips purchased before the Biden administration’s sanctions kicked in. There are also whispers they stole OpenAI’s code as the foundation for DeepSeek-V3.

But here’s the thing: Even if they took someone else’s code, it doesn’t matter anymore. DeepSeek runs efficiently on far fewer chips, uses less electricity and is cheaper to operate than its American counterparts.

The real game-changer is right here

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Last laugh: Trolls helped Amy Schumer figure out she has Cushing’s syndrome. The condition makes your body produce too much cortisol (the stress hormone), causing facial swelling known as “moon face.” Guess online haters are good for something.

$300,000

Paid over six months to TikTokkers willing to jump ship and go Instagram-exclusive. Meta’s contracts, which were sent to certain influencers with 1 million followers or more, are broken down into tiers (paywall link). The top one pays $50,000 a month to post 10 Reels between 15 seconds and 3 minutes in length. I’d take that hourly rate.

Bet he’s a peach to be around right now: Mark Zuckerberg’s got four “war rooms” going at Meta HQ to figure out DeepSeek’s secrets. Two teams are focused on training and operating costs; the other two are digging into how the data might level up Meta’s next Llama model. Think about this: All the U.S.-based AI companies just got a kick in the butt to do better.

Picture this: DeepSeek says its AI image generator is better than DALL-E 3 and Stable Diffusion. It used 72 million AI images, along with a crapload of real-world data, to train Janus-Pro-7B. I don’t think it’s that great. Try it here on a phone or computer you don’t use all the time. There’s no telling what the Chinese are doing in the background.

🇨🇳 Did DeepSeek lie? Probably. The Chinese-run AI company sent American tech stocks crashing after reporting it only cost ‘em $5.6 million to chat up to ChatGPT and all the rest. Nvidia lost $600 billion (down 17%) on Monday, the worst drop since March 2020. Turns out that was some creative math. DeepSeek spent that much training its V3 model but has invested $500 million in its tech since 2023. For the record, that’s still pretty low compared to U.S. companies, which spent upwards of $50 billion. ICYMI, here’s more about DeepSeek.

$3.69

The cost to produce and distribute a single penny. According to the U.S. Mint, the price jumped 20% during the 2024 fiscal year. Isn’t that crazy? Speaking of … How does a penny look under a microscope? Magnificent. (I heard you groan!)

💸 Good news, shoppers: Amazon is now legally required to post recall notices and product alerts on its site. If you purchased a recalled or defective item, whether from Amazon or a third party, you’ll be notified via email, and recall details will be on your orders page or this recalls page.

Under the radar: A flaw in Microsoft’s Windows BitLocker encryption system could expose your sensitive data, including passwords in unencrypted form. BitLocker is meant to protect your data if your laptop or PC is stolen by encrypting your hard drive. The fix? Update to the latest version of Windows. PSA: I only work with brands I trust to keep you secure. Hit this page to see the five must-have tools I recommend.

1,000 feet

How far one skier fell down a slope. The unnamed skier was saved by their Apple Watch’s Emergency SOS feature near Stevens Pass in Washington. Rescuers tracked the signal and found the skier with two others. Check out their epic airlift to safety. One of the skiers was uninjured; the other two had broken bones. Smart tech saves lives.

💀 Dreadful discovery: A Maryland woman went to get a new driver’s license, only to find she’d been declared legally dead. The culprit? A typo that registered her Social Security number to someone who’d passed away. The mistake led to her health insurance being canceled and her medical bills piling up. What a nightmare.

Age isn’t a number; it’s a word: Several states now require you to verify your age before accessing porn. To do this, you’ll need to upload a government ID, submit a facial scan or other biometric data, or let a third party verify your identity. That sounds great, but these sites store your data, making it vulnerable to hackers and potentially exposing the fact you watched “The Boobyguard,” not “The Bodyguard.”

🚀 Own a piece of SpaceX: Earlier this month, SpaceX tested its Starship for the seventh time, and the upper half of the rocket exploded over the Turks and Caicos. Folks there are finding pieces on the beach and selling them on eBay. Sellers are asking for anywhere from $200 to $5,000 for a chunk of the debris (paywall link).

Drones are back: Folks in the Northeast are seeing more mysterious drones since the FAA lifted its temporary ban. Enigma Labs, a research company studying unidentified phenomena, says they’ve received 49 reports this month alone in New York, New Jersey, Delaware, Virginia and Pennsylvania. I still say they’re hobby drones pulling a prank.

🚨 A new AI-based hoax: Don’t fall for a news video claiming you’re wanted for a crime. These videos look real, complete with legitimate branding like CNN logos, on-screen text describing the incident with your name and an AI newsreader reporting it. The scammers threaten to share it with your friends and family unless you pay up.

40%

Percentage of employers that would rather hire AI than a Gen Z graduate. Small-business owners say Gen Zers are often the least reliable and more likely to suffer a mental health episode compared to their other employees. I’m going to tell my Gen Z son a joke about Social Security. I bet he doesn’t get it.

$2

That’s all an Indiana pizza delivery driver got after delivering a $40 order during a massive snowstorm. A police officer saw him, shared his story on TikTok and started a GoFundMe campaign. The goal was $500, but over $30,000 poured in. Thank goodness, he kneaded the dough. (Oh, that was so bad, it was good!)

🚊 All aboard: The rail system in Japan is amazing. Now, passengers can use facial recognition to pay for tickets. Here’s how it works: Book a seat online and register an image of your face. When you get to the gate, a tablet scans your face and prints out a seat number — no waiting. Don’t be surprised if this tech makes its way to the U.S. for airline tickets.

A grave situation: People are turning to grief apps like Untangle to cope with the loss of loved ones. These apps let you connect with other mourners, share stories and get advice from AI chatbots. But what about data collection? Many of the apps’ developers sell your info to third parties, who could exploit your mental state.

He made a dumb mistake: A 26-year-old man with thinning hair found a drug called Finasteride in an online pharmacy and bought some without visiting his doctor first. Now, he’s dealing with sexual dysfunction and massive depression symptoms, even after quitting the meds. Get all prescription meds from your doctor.