Busting Top 10 Myths About Deep Seek

This document addresses the misinformation, noise, and hype around Deep Seek by debunking top myths and explaining the actual implications for everyday AI users.

Myths and Facts

Myth 1: Deep Seek's Model Cost Only $5.6 Million

• Fact: The $5.6 million covers only the final training run, excluding infrastructure costs like Nvidia's 50,000 Hopper GPUs, valued around a billion dollars.

Myth 2: Deep Seek Broke Rules

• Fact: Deep Seek innovated within export control constraints by optimizing their model architecture using less powerful H800 GPUs.

Myth 3: Deep Seek Has Outperformed Open AI

• Fact: Deep Seek focuses on efficiency; while R1 matches OpenAI's 01, OpenAI's 03 is more powerful. OpenAI has also released 03 mini for free.

Myth 4: Comparable to All Other AI Models

• Fact: Models need apple-to-apple comparisons, e.g., Deep Seek's V3 vs. ChatGPT’s 40, considering differences and functionalities.

Myth 5: Visible Chain of Thought is a Breakthrough

• Fact: R1's visible reasoning process is a UI choice, not a technical innovation, as both R1 and OpenAI 01 have similar capabilities.

Myth 6: Everything Built from Scratch

• Fact: Deep Seek allegedly used Model Distillation from ChatGPT's outputs, breaking OpenAI's terms of service but not being illegal.

Myth 7: Deep Seek is Unsafe

• Fact: Data concerns arise from it being stored in China, but alternative platforms can keep data in the US.

Myth 8: It Kills Nvidia’s Business

• Fact: Efficient AI increases demand for AI solutions, potentially benefiting Nvidia's business long-term.

Myth 9: Terrible for US Tech Companies

• Fact: Some companies, like Amazon and Meta, benefit from serving high-quality open-source models like Deep Seek's at lower costs.

Myth 10: China’s Sputnik Moment in AI

• Fact: Deep Seek's transparency and expected efficiency improvements contrast with the secrecy of the USSR's Sputnik achievements.

Implications for Users

1. Access to Advanced AI Features for Free

   • Deep Seek's R1 and ChatGPT’s 03 mini models available for complex tasks without cost.

2. Privacy Concerns and Data Protection

   • Options include alternative platforms and running models locally for improved data control.

3. Smart Choices About Switching Technologies

   • Users must evaluate actual benefits from switching tools, avoiding trends without clear advantages.

Conclusion

Deep Seek represents a significant achievement for AI users, offering competitive, efficient solutions and pushing innovations, as evidenced by OpenAI's response. However, users should be cautious about jumping on trends without understanding implications.