Annapurna's Shortform

SUMMARY OF TAKES FOLLOWING THE RELEASE OF DEEPSEEK'S REASONING MODEL

WALL STREET

Oh my god! The DeepSeek team managed to train a model with less than $6M USD! This must mean that we do not need that many chips or energy to use GenAI! Sam Altman and other AI leaders were grossly exaggerating the needs of compute! AI stocks are super overvalued!

STARTUPS AND ENTERPRISES USING LLMS TO ENHANCE THEIR PRODUCTS

Did... did we just get an open-source model that reasons? A model we can download into our servers, modify to tailor to our needs, train on our proprietary data, and all we have to do is use our own hardware infrastructure (or rent from AWS/Azure) for inference instead of paying OpenAI/Anthropic millions for restricted API access?

AI SCIENTISTS AND ENGINEERS

Whoa! These engineers at DeepSeek are truly impressive! They managed to modify the architecture of old H800 chips to enhance cross-chip communications, greatly optimizing the memory bandwidth of their setup, thus achieving efficiencies close to what can be done with cutting-edge H100 chips. Imagine what they could do if they had access to H100 chips!

Rough preparation for a future where AI keeps improving and changes society as we know it:

1. Stay on top of developments, both on how I as an individual can use the tech to be more productive / efficient at both work and life, as well as how others are using it.

    

2. Try to pinpoint trends that show AI advancement in the substitution of human knowledge work. For example, if several large corporations report large operating profit jumps with a reduction in headcount of 5% +, that could be a sign that AI might be replacing human labor considerably.

    

3. Have a good portion of my net worth invested in equity of companies devoting considerable resources to AI. My train of thought is the following: If AI advancement stalls, then these companies will likely lose considerable value. However my day to day life would not change, meaning I will continue having a traditional job for the next 3 decades and that equity loss will be made back. If AI advancement continues, and society becomes distorted because of it, at least I will likely be considerably wealthier, which would allow my wife and I to be able to make the necessary moves to mitigate the impact / enhance our quality of life as AI permeates society. My investment portfolio is currently 40-50% directly exposed to public companies advancing AI tech.

    

4. Enjoy modern society as much as I can because things are possibly going to get real weird. Not better or worse: Just weird and different.

    

5. If the AI race continues, I need to find a way to be a part of the winner of the AI race (Likely the United States or western society if it unites somehow) I would want to be part of the state that wins the race and pray the leaders redistribute the wealth accordingly.