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Hey everyone, welcome back.

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Ready for another deep dive?

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Definitely.

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Today we're gonna tackle something

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that's been making headlines

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and frankly, causing a bit of a stir.

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We're talking deep-seek R1.

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Ah, yeah, the AI that's got everybody talking.

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And the market's reeling too.

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You know, it really feels like

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we're in the middle of a Sputnik moment right now.

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You know, it's funny you say that.

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I was just thinking the same thing.

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With China launching this AI bombshell,

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it feels like the US-China tech race

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just went into overdrive.

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Oh, absolutely.

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I mean, look at what happened.

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The US stock market lost like over a trillion dollars

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in value the day deep-seek R1 dropped.

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January 28th, to be exact.

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Yeah, that kind of shock wave, you know?

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That tells you we're dealing with something way bigger

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than just another cool piece of tech.

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It's not just a cool toy, is it?

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I mean, let's break it down.

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Deep-seek R1 is free, it's open source,

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anyone can just tinker with the code.

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It's performing as well as, if not better than,

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the top US models, but here's the real kicker.

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It was developed for a fraction of the cost.

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Yeah, like less than 3% of what it took to build,

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let's say, chat GPT.

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Yeah, 3%.

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I'm still trying to wrap my head around that.

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Well, it's not just about the number itself, right?

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It's what it signals.

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Right.

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It's a potential disruption of the whole AI landscape.

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Imagine the implications.

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Access to these really powerful AI tools

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could become like totally democratized.

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That could shake up the power dynamics

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of the whole industry.

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Right, so we're not just talking about one company

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or one product, this is.

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This is much bigger.

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Yeah, this is a paradigm shift, maybe.

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So who is this mastermind behind Deep-seek?

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So that would be Liang Wenfang.

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He's a former, get this, hedge fund manager,

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who kind of embarked on this whole AI journey

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back in 2021.

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But here's the really fascinating part.

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He stocked up, get this, on NVIDIA GPUs.

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You know those high-powered chips, right?

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Yeah, yeah.

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He stocked up on those right before the US

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imposed those export restrictions.

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Like he knew, right?

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Talk about being in the right place at the right time.

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Almost like he had a crystal ball or something.

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OK, but two months, two months to build Deep-seek R1

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on a reported budget of like $5.6 million.

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That's unheard of, isn't it?

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Pretty much.

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And that speed and efficiency, that's

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what's really got everyone scratching their heads,

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even among AI experts.

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And it really comes down to a few key things.

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You know, one of them being this mixture of experts approach

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they've used.

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Mixed of experts.

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OK, break that down for me.

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Sure.

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So does Deep-seek have like a whole team of like,

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you know, Brainiacs huddled in a room somewhere?

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Not quite a room full of Brainiacs,

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but you know, the analogy kind of works.

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OK.

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Instead of creating this one massive AI model,

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they've designed Deep-seek with all these specialized modules.

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Think of it like a university, right?

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With different departments dedicated to specific subjects.

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Got it.

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You wouldn't go to your history professor

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to try to solve a complex physics problem.

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Right, right.

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So Deep-seek is only activating the modules that

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are relevant to a specific task.

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Exactly.

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Hence the efficiency.

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Clever.

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Right.

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This targeted activation conserves energy, processing

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power, and it ultimately reduces cost.

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But they don't stop there.

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They're also using something called distillation.

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Distillation.

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Like what you do with whiskey.

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Well, in the AI world, distillation

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is more about knowledge transfer.

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Not so much about making spirits.

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OK, all right.

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Think of it like an apprenticeship

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where a larger, more mature AI model helps train

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these smaller, more specialized modules.

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OK.

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It's like a master craftsman passing down their skills

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to the next generation.

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I like that.

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OK, so instead of starting from scratch,

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they're leveraging this existing knowledge

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to train these modules more efficiently.

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Exactly.

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And it's one of the reasons why they've

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been able to achieve these really impressive results

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with relatively limited resources.

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Plus, they're very transparent about their chain of thought

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reasoning, basically how the AI arrived at its conclusions.

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Wait, hold on.

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Transparent chain of thought reasoning?

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That's a stark contrast to how some US companies are

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approaching AI development, right?

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It is.

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Where they keep everything very hush, hush, very secret.

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Very much so.

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DeepSeek's open approach is really shaking things up.

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It lets developers understand how the AI is making its decisions.

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And that potentially could lead to more trust,

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maybe faster improvements.

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It's a gamble, but it seems to be paying off.

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It's definitely sending shockwaves through Silicon Valley

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from what I've been hearing.

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Oh, absolutely.

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Imagine you're a major player in the AI space, right?

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And suddenly this competitor comes out of nowhere,

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offering comparable performance for a fraction of the cost.

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I mean, no wonder there's a bit of panic mixed with a scramble

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to adapt.

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I bet.

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I read that OpenAI quickly made their GPT-3 mini-model free.

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And there are even rumors that Meta is having some serious

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internal discussions about their whole AI strategy.

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Is this a turning point for the industry, do you think?

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It could very well be.

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That old playbook of building bigger, more expensive models,

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that might not be the winning strategy anymore.

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Interesting.

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This can be the beginning of an era where the real value isn't

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in the AI model itself, but in the applications built

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on top of them.

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OK, so less about the raw power and more about what you can

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actually de-know with it.

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Precisely.

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That's a pretty interesting shift.

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It is a fascinating development.

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It's like the app store all over again.

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Remember when Apple launched the iPhone?

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The device itself, you know, cool.

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But the real revolution was all the apps.

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Oh, yeah, great parallel.

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And just like with the app store, we

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could see an explosion of creativity and innovation

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in this new AI landscape.

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AI-powered tools for everything.

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Oh, yeah.

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Education, health care, entertainment, productivity

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even.

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And these tools could be cheaper and more accessible

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than ever before thanks to platforms like DeepSeek.

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Exactly.

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This is huge, especially for smaller businesses, startups,

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even individual developers who just couldn't afford

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to get into the AI game before.

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Yeah, it's amazing.

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But with all this talk about open source and accessibility,

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there's a part of me that wonders,

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what about the potential downsides?

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What about the possibility of this technology being misused?

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I mean, anyone can access and modify DeepSeek's code, right?

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Yeah, no, that's a valid concern.

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And it's something we need to be having some really serious

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discussion about.

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Open source AI has this incredible potential for good.

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But like any powerful technology,

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it can also be used for not so good things.

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For sure.

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And DeepSeek sends user data to China, right?

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Some folks are raising some real concerns

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about privacy and security.

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I mean, we're not just talking about your favorite coffee

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order here.

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This could be some pretty sensitive personal data.

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Oh, absolutely.

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It's a really complex issue.

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And it raises all these important questions about data

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sovereignty, transparency, and ultimately, who

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controls these powerful AI systems.

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It's a balancing act, for sure, between harnessing

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the potential of AI while safeguarding individual rights.

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It's like we're at a crossroads.

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Do we embrace all the potential benefits of open source AI,

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even with the risks?

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Or do we try to put the genie back in the bottle,

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try to regulate it heavily?

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I don't think there's an easy answer.

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This is a conversation that needs to involve everybody,

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policymakers, industry leaders, ethicists, the public,

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everybody.

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We need to really consider the potential consequences

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of our decisions and work together

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to create a framework that encourages innovation

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while protecting our values.

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You mentioned ethicists, which reminds me of something

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I've been hearing more and more about,

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the Thucydides trap.

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What is that exactly?

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And how does it relate to all of this?

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Right.

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So the Thucydides trap is a term.

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It was actually coined by a political scientist

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named Graham Allison.

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OK.

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And it refers to this historical pattern

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where a rising power, like China, in this case,

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challenges an established power, like the US.

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OK.

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And that rivalry often leads to conflict.

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So are we saying that deep seek is the catalyst

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for some real world conflict between the US and China?

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That sounds a little dramatic, doesn't it?

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I don't think it's about deep seek itself being a weapon

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or anything.

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But it's more of a symbol of this larger power dynamic.

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Right.

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The rapid advancements in AI, particularly from China,

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are changing the global landscape.

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Right.

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And that shift, that could lead to more attention

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in increased competition, for sure.

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It's like a modern day space race.

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But instead of rockets and satellites, it's AI.

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Yeah.

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Just like with the space race, you've got this competition

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that can drive incredible innovation,

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but it also carries this risk of escalation,

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maybe even conflict.

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Yeah, absolutely.

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And that's why it's so important to encourage

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dialogue, collaboration, and a sense of shared responsibility.

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We need to figure out how to use AI for good, for everyone,

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rather than letting it become a source of division or conflict.

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For sure.

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For sure.

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OK.

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So we've talked about the big picture stuff,

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the potential risks, the rewards.

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But what about some specific ways

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that deep seeks arrival is already

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impacting industries and companies?

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What are you seeing?

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We're seeing a really wide range of responses.

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Everything from cautious optimism to straight up panic.

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Some companies are scrambling, investing heavily

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in their own AI research and development.

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Others are trying to figure out ways to integrate deep seek

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into their existing workflows.

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And then there are some who are just trying

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to wrap their heads around it all.

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What does it all mean for their business?

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It's a lot to process, for sure.

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00:09:31,160 --> 00:09:33,800
I read an article about how some investors are starting

274
00:09:33,800 --> 00:09:39,440
to question the valuations of some of these AI companies,

275
00:09:39,440 --> 00:09:41,520
the ones that have been pouring billions of dollars

276
00:09:41,520 --> 00:09:44,480
into developing their own large language models.

277
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If deep seek can achieve similar results for pennies on the dollar,

278
00:09:48,800 --> 00:09:50,720
what does that mean for the industry, right?

279
00:09:50,720 --> 00:09:53,200
Yeah, it's a really good question.

280
00:09:53,200 --> 00:09:57,880
We might see a shift away from this bigger is better mentality,

281
00:09:57,880 --> 00:10:00,880
which has kind of dominated the AI landscape for a while now.

282
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Efficiency, accessibility, those could

283
00:10:03,320 --> 00:10:04,480
become the new buzzwords.

284
00:10:04,480 --> 00:10:06,080
That's a pretty significant shift.

285
00:10:06,080 --> 00:10:06,840
It is.

286
00:10:06,840 --> 00:10:08,920
I'm sure some companies are feeling a little threatened

287
00:10:08,920 --> 00:10:09,400
right now.

288
00:10:09,400 --> 00:10:11,080
Oh, there's definitely a sense of disruption.

289
00:10:11,080 --> 00:10:11,800
Yeah.

290
00:10:11,800 --> 00:10:14,360
But disruption isn't always bad.

291
00:10:14,360 --> 00:10:16,920
Competition can lead to innovation, right?

292
00:10:16,920 --> 00:10:18,360
And ultimately, it's the consumers

293
00:10:18,360 --> 00:10:21,720
who benefit from better, cheaper, more accessible products

294
00:10:21,720 --> 00:10:22,320
and services.

295
00:10:22,320 --> 00:10:23,600
OK, that's a good point.

296
00:10:23,600 --> 00:10:25,440
I've also been hearing a lot about how

297
00:10:25,440 --> 00:10:30,920
deep seek could really democratize access to these AI tools,

298
00:10:30,920 --> 00:10:34,840
making them available to smaller businesses, startups,

299
00:10:34,840 --> 00:10:35,840
individuals.

300
00:10:35,840 --> 00:10:36,240
Yeah.

301
00:10:36,240 --> 00:10:37,520
What are your thoughts on that?

302
00:10:37,520 --> 00:10:40,520
Honestly, I think that's one of the most exciting aspects

303
00:10:40,520 --> 00:10:41,520
of all of this.

304
00:10:41,520 --> 00:10:44,680
Imagine anyone with a laptop and a good idea

305
00:10:44,680 --> 00:10:47,160
can harness the power of AI.

306
00:10:47,160 --> 00:10:48,760
They can create something amazing.

307
00:10:48,760 --> 00:10:49,260
Yeah.

308
00:10:49,260 --> 00:10:51,520
It reminds me of the early days of the internet.

309
00:10:51,520 --> 00:10:54,920
Suddenly, anybody could build a website and share their ideas.

310
00:10:54,920 --> 00:10:56,560
Right, right.

311
00:10:56,560 --> 00:10:57,520
Exactly.

312
00:10:57,520 --> 00:11:00,900
And just like the internet, the democratization of AI

313
00:11:00,900 --> 00:11:03,080
could lead to this incredible explosion

314
00:11:03,080 --> 00:11:04,920
of creativity and innovation.

315
00:11:04,920 --> 00:11:05,600
Yeah.

316
00:11:05,600 --> 00:11:07,560
New applications and solutions emerging

317
00:11:07,560 --> 00:11:09,040
from all corners of the globe.

318
00:11:09,040 --> 00:11:11,880
That's an inspiring thought, but let's not get too carried away.

319
00:11:11,880 --> 00:11:12,240
Yeah.

320
00:11:12,240 --> 00:11:14,360
It's important to acknowledge that there are also

321
00:11:14,360 --> 00:11:19,200
potential downsides to this rapid democratization of AI.

322
00:11:19,200 --> 00:11:19,840
Oh, totally.

323
00:11:19,840 --> 00:11:25,360
I mean, we need to be mindful of the misuse, the bias,

324
00:11:25,360 --> 00:11:27,240
the unintended consequences.

325
00:11:27,240 --> 00:11:31,200
It's crucial that we develop ethical frameworks and safeguards,

326
00:11:31,200 --> 00:11:33,120
especially as this technology gets

327
00:11:33,120 --> 00:11:34,960
more powerful and ubiquitous.

328
00:11:34,960 --> 00:11:36,280
For sure.

329
00:11:36,280 --> 00:11:38,280
And speaking of unintended consequences,

330
00:11:38,280 --> 00:11:40,600
one of the biggest concerns I keep hearing about

331
00:11:40,600 --> 00:11:43,800
is AI's impact on jobs.

332
00:11:43,800 --> 00:11:47,480
If machines can do more and more of the work that humays do,

333
00:11:47,480 --> 00:11:49,720
what does that mean for the future of employment?

334
00:11:49,720 --> 00:11:50,800
I mean, that's a big one.

335
00:11:50,800 --> 00:11:52,600
That's the question that's been on everybody's mind

336
00:11:52,600 --> 00:11:55,160
since the dawn of the Industrial Revolution, right?

337
00:11:55,160 --> 00:11:55,660
Yeah.

338
00:11:55,660 --> 00:11:58,360
That's a really complex issue, no easy answers.

339
00:11:58,360 --> 00:11:59,720
So is this time different?

340
00:11:59,720 --> 00:12:03,840
I mean, is AI going to lead to mass unemployment?

341
00:12:03,840 --> 00:12:07,320
Or are we just going to see a shift in the types of jobs

342
00:12:07,320 --> 00:12:08,160
that are in demand?

343
00:12:08,160 --> 00:12:09,560
It's probably going to be a bit of both.

344
00:12:09,560 --> 00:12:11,120
Some jobs are going to be automated.

345
00:12:11,120 --> 00:12:12,600
That's inevitable.

346
00:12:12,600 --> 00:12:14,880
But new jobs will also be created,

347
00:12:14,880 --> 00:12:18,520
especially in areas that require creativity,

348
00:12:18,520 --> 00:12:21,280
critical thinking, emotional intelligence,

349
00:12:21,280 --> 00:12:24,200
those skills that are hard for machines to replicate.

350
00:12:24,200 --> 00:12:26,800
So the key is to adapt, to learn new skills.

351
00:12:26,800 --> 00:12:27,560
Absolutely.

352
00:12:27,560 --> 00:12:30,720
We all need to embrace lifelong learning,

353
00:12:30,720 --> 00:12:32,040
develop the skills that are going

354
00:12:32,040 --> 00:12:35,480
to be needed in this new, rapidly evolving landscape.

355
00:12:35,480 --> 00:12:37,000
So the future of work is going to be

356
00:12:37,000 --> 00:12:41,200
about staying agile, adaptable, constantly learning

357
00:12:41,200 --> 00:12:41,880
and evolving.

358
00:12:41,880 --> 00:12:42,480
Precisely.

359
00:12:42,480 --> 00:12:44,720
The folks who can embrace that mindset,

360
00:12:44,720 --> 00:12:47,040
they're the ones who will thrive in the age of AI.

361
00:12:47,040 --> 00:12:47,760
OK.

362
00:12:47,760 --> 00:12:49,640
So we've covered a lot here.

363
00:12:49,640 --> 00:12:51,600
The big picture, the risks and rewards,

364
00:12:51,600 --> 00:12:54,200
the impacts on industries, on individuals.

365
00:12:54,200 --> 00:12:55,920
But there's one more piece of this puzzle

366
00:12:55,920 --> 00:12:57,640
that I think we need to explore.

367
00:12:57,640 --> 00:13:00,160
The ethical considerations surrounding deep seek.

368
00:13:00,160 --> 00:13:02,440
And really, the future of AI as a whole.

369
00:13:02,440 --> 00:13:04,720
It feels like we're in uncharted territory here, you know?

370
00:13:04,720 --> 00:13:05,240
Yeah.

371
00:13:05,240 --> 00:13:08,440
With AI becoming so powerful, so accessible.

372
00:13:08,440 --> 00:13:10,360
I mean, we've got to be asking some tough questions.

373
00:13:10,360 --> 00:13:14,360
How do we make sure it's used ethically, responsibly?

374
00:13:14,360 --> 00:13:16,800
It's not even just about preventing it from being

375
00:13:16,800 --> 00:13:18,040
used for bad things.

376
00:13:18,040 --> 00:13:20,600
We have to think about the unintended consequences too.

377
00:13:20,600 --> 00:13:24,000
Even when AI is designed with the best intentions.

378
00:13:24,000 --> 00:13:25,000
OK, give me an example.

379
00:13:25,000 --> 00:13:26,800
What kind of unintended consequences?

380
00:13:26,800 --> 00:13:29,000
Let's say AI-powered hiring tools.

381
00:13:29,000 --> 00:13:29,400
OK.

382
00:13:29,400 --> 00:13:31,400
They're supposed to make hiring more efficient,

383
00:13:31,400 --> 00:13:33,360
remove human bias.

384
00:13:33,360 --> 00:13:33,680
Right?

385
00:13:33,680 --> 00:13:34,080
Right.

386
00:13:34,080 --> 00:13:38,240
But what if the data that's used to train these systems,

387
00:13:38,240 --> 00:13:40,400
what if that data is biased itself?

388
00:13:40,400 --> 00:13:41,840
Ah, I see you're saying.

389
00:13:41,840 --> 00:13:45,160
So the AI could end up perpetuating those biases,

390
00:13:45,160 --> 00:13:48,880
maybe even amplifying them without us even realizing it.

391
00:13:48,880 --> 00:13:49,600
Exactly.

392
00:13:49,600 --> 00:13:50,720
And that's just one example.

393
00:13:50,720 --> 00:13:52,480
We've got to be really careful about the data

394
00:13:52,480 --> 00:13:54,680
that we're using to train these AI systems.

395
00:13:54,680 --> 00:13:55,160
Right.

396
00:13:55,160 --> 00:13:57,440
We need to be constantly monitoring

397
00:13:57,440 --> 00:14:00,640
for any signs of bias, any unintended consequences.

398
00:14:00,640 --> 00:14:03,120
It sounds like a whole new level of responsibility here.

399
00:14:03,120 --> 00:14:05,480
Like, it's not just about writing the code anymore.

400
00:14:05,480 --> 00:14:08,800
It's about understanding the impact of that code on society.

401
00:14:08,800 --> 00:14:10,680
It's a whole new way of thinking for sure.

402
00:14:10,680 --> 00:14:12,280
And it needs to be a team effort.

403
00:14:12,280 --> 00:14:14,640
You know, the developers, the ethicists, the policymakers,

404
00:14:14,640 --> 00:14:16,200
even the public.

405
00:14:16,200 --> 00:14:21,360
We need to create guidelines, frameworks, you know,

406
00:14:21,360 --> 00:14:23,720
for developing and deploying AI ethically.

407
00:14:23,720 --> 00:14:25,080
So this isn't just a tech issue.

408
00:14:25,080 --> 00:14:26,800
It's a societal issue.

409
00:14:26,800 --> 00:14:28,920
And we need to have these conversations now

410
00:14:28,920 --> 00:14:30,840
before it's too late to course correct.

411
00:14:30,840 --> 00:14:31,400
Absolutely.

412
00:14:31,400 --> 00:14:34,080
We're at this, like, pivotal point.

413
00:14:34,080 --> 00:14:37,360
The decisions we make today about AI,

414
00:14:37,360 --> 00:14:39,400
they're going to echo for generations.

415
00:14:39,400 --> 00:14:39,640
OK.

416
00:14:39,640 --> 00:14:40,800
So let's say we get it right.

417
00:14:40,800 --> 00:14:43,440
We manage to steer AI in the right direction.

418
00:14:43,440 --> 00:14:45,120
What does that future look like?

419
00:14:45,120 --> 00:14:46,160
Paint me a picture.

420
00:14:46,160 --> 00:14:48,760
Imagine a world where AI helps us,

421
00:14:48,760 --> 00:14:51,560
where it augments our abilities, helps us solve problems

422
00:14:51,560 --> 00:14:54,360
we could never solve before, helps us make better decisions.

423
00:14:54,360 --> 00:14:54,760
I like it.

424
00:14:54,760 --> 00:14:55,720
Give me some specifics.

425
00:14:55,720 --> 00:14:56,960
What kind of changes?

426
00:14:56,960 --> 00:14:58,200
Think about health care.

427
00:14:58,200 --> 00:15:00,800
AI could help us develop personalized medicine,

428
00:15:00,800 --> 00:15:03,360
you know, to take diseases early, maybe even

429
00:15:03,360 --> 00:15:04,880
discover new cures faster.

430
00:15:04,880 --> 00:15:05,960
That would be incredible.

431
00:15:05,960 --> 00:15:07,120
What about other fields?

432
00:15:07,120 --> 00:15:08,320
Education.

433
00:15:08,320 --> 00:15:10,880
AI could give every student a truly personalized learning

434
00:15:10,880 --> 00:15:12,720
experience tailored to their needs.

435
00:15:12,720 --> 00:15:13,920
Wow.

436
00:15:13,920 --> 00:15:15,040
That's a game changer.

437
00:15:15,040 --> 00:15:17,600
And what about, like, the environment?

438
00:15:17,600 --> 00:15:20,440
AI could help us optimize our energy consumption,

439
00:15:20,440 --> 00:15:23,800
cut down on waste, you know, develop more sustainable solutions

440
00:15:23,800 --> 00:15:24,680
to climate change.

441
00:15:24,680 --> 00:15:26,160
The possibilities are endless.

442
00:15:26,160 --> 00:15:28,440
It's almost like a little overwhelming to think about.

443
00:15:28,440 --> 00:15:29,400
It is.

444
00:15:29,400 --> 00:15:31,760
But it's important to remember, AI is a tool, right?

445
00:15:31,760 --> 00:15:32,560
Right.

446
00:15:32,560 --> 00:15:34,920
It ends up to us how we use it, how we shape it,

447
00:15:34,920 --> 00:15:38,680
how we make sure it's working for humanity, not against it.

448
00:15:38,680 --> 00:15:41,080
This deep-seek moment, it's a wake-up call.

449
00:15:41,080 --> 00:15:43,720
It's telling us that the future isn't set in stone.

450
00:15:43,720 --> 00:15:45,280
We're creating it right now.

451
00:15:45,280 --> 00:15:46,320
That's a great way to put it.

452
00:15:46,320 --> 00:15:48,160
And AI is going to play a huge role.

453
00:15:48,160 --> 00:15:49,040
It is.

454
00:15:49,040 --> 00:15:51,600
This is a call to action for everybody, you know?

455
00:15:51,600 --> 00:15:54,080
Engage the conversation, stay informed,

456
00:15:54,080 --> 00:15:55,720
make your voices heard.

457
00:15:55,720 --> 00:15:58,720
The future of AI, it's in our hands.

458
00:15:58,720 --> 00:16:01,160
So if deep-seek is our sputnik moment,

459
00:16:01,160 --> 00:16:04,240
the big question now is what will be our space race?

460
00:16:04,240 --> 00:16:06,040
What kind of future will we choose to build

461
00:16:06,040 --> 00:16:07,840
with this incredible technology?

462
00:16:07,840 --> 00:16:09,880
It's something for all of us to think about.

463
00:16:09,880 --> 00:16:12,480
I hope this deep-dyes gave everyone a better understanding

464
00:16:12,480 --> 00:16:15,080
of just how complex this all is.

465
00:16:15,080 --> 00:16:17,360
You know, deep-seek, the future of AI,

466
00:16:17,360 --> 00:16:19,320
it's changing so fast.

467
00:16:19,320 --> 00:16:20,440
It is, it is.

468
00:16:20,440 --> 00:16:22,560
So keep those brain gears turning.

469
00:16:22,560 --> 00:16:43,320
And join us again next time for another deep dive.

