Zach Vorhies reveals how China's DeepSeek R1 AI model outperforms OpenAI, sends Nvidia stock crashing
By glen // 2025-01-28
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  • China's DeepSeek R1 AI model outperforms leading tech giants' solutions, running on desktops at 3% of the cost, causing Nvidia's stock to drop 17% in a day.
  • The model's efficiency challenges the assumption that high computational power is essential for advanced AI, eroding the competitive edge of Western tech companies.
  • DeepSeek R1 is seen as a state-level effort by China, demonstrating significant geopolitical and economic implications, driven by the Chinese Communist Party's strategic focus on AI.
  • The AI model can be distilled into smaller, adaptable versions for various devices, democratizing AI technology and opening new applications for smaller companies and developers.
  • The release of DeepSeek R1 signals a shift in the global AI landscape, with potential widespread impacts on industries from legal to creative, and raises concerns about AI regulation and ethical considerations.
In a shocking turn of events, the global tech industry has been thrown into turmoil following the release of China's DeepSeek R1 AI model. This groundbreaking development has not only outperformed models from leading tech giants like OpenAI and Facebook but has also caused Nvidia's stock to plummet by 17% in a single day. The release of DeepSeek R1 has sent shockwaves through the market, raising serious questions about China's AI capabilities and the future of global technological leadership.

The game-changer: DeepSeek R1

Zach Vorhies, a former Google whistleblower and AI expert, joined Mike Adams to discuss the implications of this revolutionary AI model. According to Vorhies, what sets DeepSeek R1 apart is its ability to run on desktop computers at a fraction of the cost of existing solutions. "DeepSeek R1 is very similar to OpenAI's GPT-4 in performance, but unlike GPT-4, it runs on a desktop computer at 3% of the cost," Vorhies explained. This unprecedented efficiency has caught the tech industry off guard, particularly given the stringent export controls on powerful GPUs like Nvidia's H100, which China has been subject to under Western sanctions.

The market reaction

The impact on Nvidia, which has been heavily valued for its computational power in AI training, has been immediate and severe. "Nvidia has been priced based on the assumption that immense computational power is required for training hyper-intelligent AI models," Vorhies said. "But China has shown that this isn't necessarily the case. They've achieved AI supremacy with a fraction of the computational resources." The stock market's response has been swift, with Nvidia's shares crashing by 17% in a single day. This dramatic drop reflects the market's realization that the AI landscape is fundamentally changing, and the competitive advantage once held by Western tech giants is eroding. The release of DeepSeek R1 is not just a technical achievement; it has significant geopolitical and economic ramifications. Vorhies believes that this development is a state-level effort, driven by the Chinese Communist Party's strategic focus on AI. "This is a full-power effort by the Chinese state," he emphasized. "They've managed to train these models with far less computational capacity than what Western companies have been using."

Decentralization and Democratization

One of the most intriguing aspects of DeepSeek R1 is its ability to distill itself into smaller, more specific models that can run on a variety of devices, including iPhones and Raspberry Pis. "These models are not just powerful; they can adapt to specific use cases and run locally, which opens up a whole new range of applications," Vorhies noted. This democratization of AI technology means that small and mid-sized companies, as well as individual developers, now have access to tools that were previously the domain of tech giants.

The future of AI

The implications of DeepSeek R1 extend beyond the tech industry. Vorhies predicts that this model will be used in a wide range of applications, from policy writing and legal documentation to creative industries like scriptwriting. "These models can synthesize vast amounts of information and produce high-quality outputs in a matter of minutes," he said. "This is a game-changer for industries that rely on data and content generation." However, the rise of DeepSeek R1 also raises concerns about the future of AI regulation and ethical considerations. Vorhies warned that the AI arms race is intensifying, and the United States may need to take drastic measures to regain its competitive edge. "We need to restructure our economic system and possibly go to a wartime footing to catch up with China," he stated.

Conclusion

The release of China's DeepSeek R1 AI model marks a pivotal moment in the global AI race. While the immediate impact has been a significant market correction, the long-term consequences could reshape the balance of power in technology and beyond. As the world grapples with the implications of this development, one thing is clear: the landscape of AI is changing, and the players who can adapt the fastest will lead the way into the future. For now, the question remains: Can the United States and its allies recover from this setback, or will China's DeepSeek R1 solidify its position as the leader in the global AI revolution? Watch this full episode of the "Health Ranger Report" with Mike Adams, the Health Ranger, and Zach Vorhies as they talk about the impact of DeepSeek R1 model on the stock market. This video is from the Health Ranger Report channel on Brighteon.com.

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