What you need to know about DeepSeek

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

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February 8th, 2025

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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.
 

🛜 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.

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.

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.

💰 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.

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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

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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.

China's new jet fighter aircraft

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With the debut of China’s J-35A stealth fighter, concerns mount over whether stolen U.S. data played a role in its design. 

Is your Wi-Fi router spying for China?

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Federal officials are raising red flags over TP-Link, warning their products might be linked to Chinese espionage. Plus, Redbox files for bankruptcy, Taylor Swift drops cassettes, and Apple’s next iPhone features AI.

America's drinking water is under attack

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Water systems in Kansas, Texas and Pennsylvania have already been hit by hackers in China, Russia and Iran. Plus, clothes that block 5G waves, AI coming to Alexa, and Walmart’s new digital pricing. We also chat with Joseph Cox about his book “Dark Wire,” which is about Anom, the FBI’s secret app used by criminals.

June 8th, 2024

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Kathy’s husband is talking to other women online, and falling for scams. She doesn’t know what steps to take next. Plus, NewsBreak app has ties to Communist China, X allows porn, and AI coworkers are coming.

China preps to hack the U.S.

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The FBI says Chinese gov-backed hackers are waiting to ‘deal a devastating blow.’ Plus, Taylor Swift’s album leaks, Meta’s AI chatbot goes live, and lots of big retailers are shutting down (so long, 99 Cents Only store).