DeepSeek’s disruption of the AI landscape
This blog post was automatically generated (and translated). It is based on the following original, which I selected for publication on this blog:
Yanis Varoufakis on Cloud Capital vs AI: DeepSeek, Technofeudalism, Capitalism and the New Cold War – YouTube.
DeepSeek's Disruption of the AI Landscape
The emergence of DeepSeek, a Chinese AI company, has significantly altered the global AI landscape. By offering AI models for free, DeepSeek challenges the established business models of companies like OpenAI and raises questions about the future of proprietary AI technology.
From Proprietary to Open Source
DeepSeek's arrival signals a potential transition from proprietary to open-source AI technology. While the underlying code of many AI companies has always been open source, the training of these models relied heavily on privatized (or, arguably, stolen) data. DeepSeek has disrupted this model by decommodifying the results of AI training, making them accessible to the public at a minimal cost.
The impact of this shift is considerable. Developers worldwide are already building their own models on top of DeepSeek's, undermining the subscription-based commodity model favored by American Big Tech AI service providers.
Cloud Capital and Techno-Feudalism
However, it's crucial to distinguish between AI as a commodity and cloud capital utilized for behavioral modification. While companies like DeepSeek threaten the commodified AI services market, they do not necessarily challenge the power of cloud capital giants like Amazon, Meta, and Google. These companies utilize cloud capital to modify user behavior, driving them towards closed ecosystems like Amazon or Alibaba.
To illustrate this difference, consider the contrasting examples of Alexa and ChatGPT. ChatGPT operates within a market subject to competition, making it vulnerable to companies like DeepSeek. Alexa, on the other hand, functions as a tool for behavioral modification, encouraging users to buy from Amazon and reinforcing the techno-feudal order.
The New Cold War
DeepSeek's success could intensify the existing technological rivalry between the United States and China. The realization that a Chinese company can produce superior AI technology and services on a shoestring budget may trigger a reassessment of the American approach to AI development.
Implications for the Future
DeepSeek's emergence prompts several critical questions. Will the US government respond with increased investment and strategic initiatives? Can the open-source model truly challenge the dominance of cloud capital? And what does this mean for the future of AI and its role in shaping society?
The developments surrounding DeepSeek serve as a reminder that the AI landscape is constantly evolving, and the balance of power can shift unexpectedly. The coming years will reveal whether DeepSeek's disruption marks a fundamental change in the trajectory of AI or a temporary setback for the established players.