A humanoid robot in China malfunctioned, flailed around, and thrashed wildly at factory workers during a routine test. Naturally, some humans online are calling the start of our AI judgment day, while others are still debating 100 men vs 1 gorilla. Cool, cool.
What you need to know about DeepSeek
© Rokas Tenys | Dreamstime.com, play.google.com
I’ve been saying it for years: The country that masters AI will dominate the world economically, politically and militarily. Since ChatGPT dropped, the U.S. seemed untouchable. Most of us Americans assumed we were a couple of years ahead of China in terms of AI, but the game has changed — and fast.
The latest version of DeepSeek AI, an open-source model out of China, is so good, it tanked U.S. tech stock prices (Nvidia lost $593 billion in value!), shot to No. 1 in the Apple App Store overnight and now has the entire world wondering, “If this is what China is showing us, what’s next?”
Move over, OpenAI
DeepSeek was founded in May 2023 in Zhejiang, China. Its first models were nothing to write home about; the latest release, DeepSeek-V3, is another story.
It was developed in just 55 days, trained on 671 billion parameters and performs as well as (or better than) Meta’s Llama, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in math, coding and reasoning. Let that sink in. It took China just two months to beat the American giants.
The money is where it gets really interesting. OpenAI spent $5 billion on its model in just one year. Google shelled out $50 billion on AI development in 2024. Microsoft has invested $13 billion into AI partnerships.
What about DeepSeek? They spent $5.6 million. It’s a cheap Chinese knockoff.
How’d they do it?
China put together a group of young, ambitious, super-smart engineers and researchers who worked under strict limitations. The official story is they couldn’t use Nvidia’s top-tier H100 chips because of U.S. export restrictions. Instead, they worked with less powerful H800 chips.
Rumors suggest China started with over 10,000 super-powered H100 Nvidia AI chips purchased before the Biden administration’s sanctions kicked in. There are also whispers they stole OpenAI’s code as the foundation for DeepSeek-V3.
But here’s the thing: Even if they took someone else’s code, it doesn’t matter anymore. DeepSeek runs efficiently on far fewer chips, uses less electricity and is cheaper to operate than its American counterparts.
The real game-changer is right here
iPhone or Galaxy? Tariffs make the choice easier
New tariffs will drive up prices on China-made phones. That’s bad news for Apple.
🛜 Cord-cutting: Not what you think. Since 2023, at least 11 undersea cables have gone dark from suspected Russian sabotage (paywall link). China’s linked to incidents near Taiwan, too. Both say “not me.” Over 95% of the world’s data travels via 500+ of these lines. Without them? We’d be back to the dial-up era. We’re one cable cut away from faxing memes to your friends.
2,899
That’s how many satellites China wants in its new orbiting AI supercomputer. It’s called the “Three-Body Computing Constellation,” and they’ve already launched 12. Each satellite runs its own 8 billion parameter AI model and talks to the others at up to 100 Gbps (with lasers, obviously). The goal is basically turning space into one giant neural net.
2,700
That’s how many parts are inside an iPhone, sourced from 28 countries. Less than 5% are made in the U.S., and most of the rest come from Asia. Only 30 out of 187 suppliers have no presence in China. “Designed in California” is different when the screws are from four continents.
5 minutes
China’s top battery makers have reached five-minute charging speeds for EVs, more or less the time it takes at a gas station. CATL and BYD just flexed batteries that can deliver up to 320+ miles of range off a five-minute charge. Meanwhile, most U.S. EVs take 15 to 30 minutes.
514% jump
Taobao downloads spiked this month. The Chinese shopping app is now the No. 2 free iPhone app, behind DHgate at No. 1. Folks are buying directly from China after watching TikToks of luxury items being relabeled and marked up. Now for $12.99, you too can own a “Gucchi” belt with radiation.
🇨🇳 Say it’s not Tso: Obviously, we just don’t care about giving China even more of our data. China’s DeepSeek just passed ChatGPT in new monthly website visits with 524.7 million, compared to ChatGPT’s 500 million. DeepSeek holds 12.12% of the chatbot market, second to ChatGPT. Think about what you hand over to this communist chatbot.
China preparing for a space war: This is sci-fi for real. China’s testing satellites that perform tricky, close-range maneuvers, like dogfighting between fighter jets. China says they’re for “space environment monitoring,” but uhm, one model apparently has a robotic arm (paywall link). It could be used to attack other satellites!
All it takes is a few hundred bucks: Sites like China’s Temu sell cheap drone accessories that can turn them into DIY weapons. We’re talking AI-guided cameras that recognize people and vehicles, and cargo holders that can carry explosives. Seriously frightening.
🚀 Trump announced Boeing will build the F-47: It’ll still have a human pilot, but it’s capable of flying autonomously with a swarm of AI-powered drone wingmen. This next-gen jet packs stealth tech, advanced sensors and hypersonic weaponry. China and Russia? Not even close. Watch more here.
Meta doesn’t want you to read this: A new memoir by Facebook’s former director of public policy, Sarah Wynn-Williams, alleges how Zuck buddied up to China, refused to take meetings before noon, wanted her to plan a mob for his arrival in China, and exposes other Meta execs. Meta denies everything. But Careless People has already sold 60,000 copies in its first week and is a top 10 Amazon bestseller.
We may earn a commission from purchases, but our recommendations are always objective.
TikTok on the clock: The latest plan to save TikTok by April 5 comes with a big catch (paywall link). Oracle is the front-runner, but it will only take a small stake to look after your data. The app’s algorithm? Surprise, surprise, China will still control it. The algorithm is what makes TikTok tick.
A new AI chatbot hit the web: Manus isn’t your typical China-owned chatbot. Think of it like a digital worker that gets stuff done on its own. I tried it for a new business I’m starting, and it even drew prototypes. You’ll need to fill out the invite to try it. Remember, this is China, so nothing confidential.
Temu is planting seeds for something: A Texas man ordered a dog toy from China-owned Temu but received seeds instead. It’s the fifth suspicious package reported in the state. One was an invasive plant species. If you receive seeds in the mail, don’t throw them away or plant them. Report it to your state’s Department of Agriculture.
February 8th, 2025
Use DeepSeek? China knows your secrets. Plus, how many times a week you’re secretly recorded, why Apple and Samsung are being sued, and how much Amazon’s upgraded Alexa will cost you.
💰 Silicon Valley’s unicorns fly: The venture capitalists are upset. Communist China’s DeepSeek AI is 30 times cheaper to run than its American counterparts. In an interview, DeepSeek’s founder said he didn’t mean to start a price war; AI should simply be affordable for everyone. Oh, and he thinks AGI (that’s “artificial general intelligence,” when AI becomes smarter than humans and makes its own decisions) is two years away. Sleep well.
17
Solution the French-governed AI chatbot gave to 5(3+2). (The answer is 25.) The bot, Lucie, also said, “Cow’s eggs, also known as chicken’s eggs, are edible eggs produced by cows.” The bot is offline now. So, to recap, we need to worry about China in the AI race and definitely not France. Noted.
Cheaters don’t want you to know this iPhone trick
Think someone’s two-timing you? They could be using this sneaky iPhone app to cover their tracks. We’ll also talk about China’s control over TikTok, IRS changes for online sellers, and Trump’s new memecoin.