alt Hacker NewsKind of insane how a severely limited company founded 1 year ago competes with the infinite budget of Open AI
Their parent hedge fund company isn't huge either, just 160 employees and $7b AUM according to Wikipedia. If that was a US hedge fund it would be the #180 largest in terms of AUM, so not small but nothing crazy either
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This is the reason I believe the new AI chip restriction that was just put in place will backfire.
Makes me suspect if the primary plateau is data, and we're now seeing a place where all the AI labs who are actually having a crack at this seem to have similar levels of quality data to train on. Layering in chain of thought and minor architectural changes doesn't seem to be giving anyone a truly groundbreaking lead.
I might be just being a bitter sceptic (although I'm probably not bitter because I'm very excited by their results), but some of the spending stats feel slightly too good to be true to me. But I can't really claim to have an insider-quality intuition.
It's pretty clear, because OpenAI has no clue what they are doing. If I was the CEO of OpenAI, I would have invested significantly in catastrophic forgetting mitigations and built a model capable of continual learning.
If you have a model that can learn as you go, then the concept of accuracy on a static benchmark would become meaningless, since a perfect continual learning model would memorize all the answers within a few passes and always achieve a 100% score on every question. The only relevant metrics would be sample efficiency and time to convergence. i.e. how quickly does the system learn?
It's not surprising. Large organizations are plagued with bureaucracy, paperwork and inertia. It's much more easier to innovate in a smaller setting.
$7 billion in assets does not seem severely limited to me. Maybe compared to a handful of the most funded/richest companies in the world
when they started they already had everything that was created. before them and they have no moat.
>DeepSeek is a plucky little company
DeepSeek is a Chinese AI company and we're talking about military technology. The next world war will be fought by AI, so the Chinese government won't leave China's AI development to chance. The might of the entire Chinese government is backing DeepSeek.
Except it’s not really a fair comparison, since DeepSeek is able to take advantage of a lot of the research pioneered by those companies with infinite budgets who have been researching this stuff in some cases for decades now.
The key insight is that those building foundational models and original research are always first, and then models like DeepSeek always appear 6 to 12 months later. This latest move towards reasoning models is a perfect example.
Or perhaps DeepSeek is also doing all their own original research and it’s just coincidence they end up with something similar yet always a little bit behind.
The nature of software that has not moat built into it. Which is fantastic for the world, as long as some companies are willing to pay the premium involved in paving the way. But man, what a daunting prospect for developers and investors.